COBRA Premium Reduction Extensions Possible with Senate Bill 2730

On November 4, 2009, United States Senators Sherrod Brown (D-Ohio) and Bob Casey (D-Pennsylvania) introduced the COBRA Subsidy Extension and Enhancement Act of 2009 (S. 2730) that, if passed, will extend the COBRA premium reductions first allowed under the American Recovery and Reinvestment Act of 2009 (ARRA). Representative Joe Sestak (D-Pennsylvania) introduced a similar bill, the Extended COBRA Continuation Protection Act of 2009 (H.R. 3930), in the House on October 26, 2009.

The Senate bill, if passed, would do the following three things:

People already receiving COBRA premium reductions from a job loss in 2009, would continue to get COBRA premium reductions.

The bill would allow people who lose their job between January 1, 2010 through June 30, 2010 and who qualify for COBRA, to be considered for a 25% COBRA premium reduction.

People that lost their jobs in the beginning of the recession of 2008 and are on the traditional COBRA program would be extended from 18 months to 24 months.

What to Do It You Want COBRA Premium Reductions Extended

If you have been receiving COBRA premium reductions under the American Recovery and Reinvestment Act of 2009 and you want to continue receiving those COBRA premium reductions, write or call your United States Senator and Representatives. Here is how you do that:

United States Senate - click here for links to email and phone numbers of Democrat and Republic Senators in your State. Ask them to VOTE YES FOR Senate Bill 2730 to extend COBRA Premium Reductions.

United States House of Representatives - click here for links to email and phone numbers of Democratic and Republican House of Representatives from your area. Ask them to VOTE YES FOR H.R. 3930 to extend COBRA Premium Reductions.

These bills introduced into the United State House and the United States Senate will amend sections of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) that was signed into law by President Barack Obama shortly after his historic inauguration in January 2009. There are also sections of the 2009 Obama stimulus package addressing unemployment benefits that are under consideration for amendment and extension by th2 111th Congress.

Under the original COBRA premium reduction benefits, employers that offered group health insurance plans paid 65% of your COBRA monthly premium if you qualified to receive COBRA benefits. Your COBRA premium payment would only cost you 35% of the original cost. The Federal government would then reimburse the employer for that money.

How To Find Out More Information About COBRA

The COBRA premium reduction benefit allowed thousands of families whose members lost their jobs during the recession, to afford to keep their family members covered by health insurance. If you need information about how to get the COBRA premium reduction, here is a list of resources for more information about the COBRA premium reduction program:

Visit FAQs For Employees About COBRA Premium Reduction Under ARRA that explains if you qualify for COBRA and if you qualify for the COBRA Premium Reduction.

Call the United States Department of Labor at 1-866-444-3272 to speak to an Employee Benefits Security Administration Benefits Advisor.

Visit the Internal Revenue Service (IRS) web site titled COBRA Health Insurance Continuation Premium Subsidy.

Sources:

Extended COBRA Continuation Protection Act of 2009 (Introduced in Senate)
http://thomas.loc.gov/cgi-bin/query

Extended COBRA Continuation Protection Act of 2009 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query

FAQs For Employees About COBRA Premium Reduction Under ARRA
http://www.dol.gov/ebsa/faqs/faq-cobra-premiumreductionEE.html