Obama Stimulus Package: 65% COBRA Premium Reduction Possible
Eligible Employees Who Lost Job Only Pay 35% of COBRA Health Insurance Premium Payments
Under Obama's Stimulus Package, you may be eligible for a 65% reduction in COBRA premiums as soon as March 1, 2009. Your employer should notify you if you are eligible for COBRA and if you are eligible to receive the premium reduction. If your employer does not inform you about the COBRA premium reduction, contact one of the sources at the end of this article. If you are already on COBRA, you will not receive a reduction for premiums already paid, but you can apply for reductions in the remaining COBRA payments you will make after March 1, 2009.
COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. Employees that had a reduction in hours leading to loss of benefits may also qualify for COBRA. Once you have been approved for COBRA, you make the premium payments for your health insurance. The length of time you are allowed to receive health benefits under COBRA varies depending on your situation.
In this bad economy, individual health insurance coverage can be prohibitive, and for many who just lost their job, even COBRA premiums are beyond reach. Under Obama's Stimulus Package, you might be eligible for reduced premiums in which the federal government will reimburse employers 65% of the COBRA premium and charge you only 35% of the COBRA premium. In many cases, this means the difference of you paying $245 - $280 per month instead of $700 - $800 per month for your health insurance coverage while you are unemployed.
This is a huge benefit of Obama's stimulus package that will actually help me since my husband just lost his job and recently had spinal fusion surgery. Despite the controversy surrounding Obama's Stimulus Package, I can only thank God that President Barack Obama and Congress had the wherewithal to include this critical health insurance benefit as part of the economic stimulus for Americans. It will save our lives.
How to Get Information About COBRA Premium Reductions Under Stimulus Package
The U.S. Department of Labor has more information about COBRA and who qualifies for the reduction in premiums. You can call and speak to a Benefits Advisor at 1-866-444-3272 or visit this web site: FAQs About COBRA. You can also visit the Employee Benefits Security Administration web site to learn more about whether you are eligible to receive the 65% reduction in COBRA premium payments.
Sources:
U.S. Department of Labor
FAQs About COBRA
http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.HTML
Employee Benefits Security Administration
COBRA
Published by Aly Adair
Aly Adair is an Air Force Veteran with a career in teaching and educational publishing. Aly has an MBA and is a former small business owner. View profile
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49 Comments
Post a Commentmy name is millie joiner i was employed at winn dixie warehouse from aug,1990 till oct,2010 cobra told me i had to come up with $1900.00 by jan,29th then $650.00 in feb,till the end cobra said they are not giving me any percentage off they call the shots basically and i pay or have no insurance i have not asked for help until now i have 0 income coming in now cause of my disabilities i think cobra is hwy robbery people do not have that kinda moneyps,give me some feed back and suggestions my email is millie-williams65@hotmail.com
thank you
millie joiner
Why didn't the reduction in Cobra premiums go for the full 18 months. The jump for the last 3 months is causing me to drop health coverage I could have had for another 3 months.
my wife lost our health insurance do to a reduction of hours in October 31,2010.
When is the deadline to apply for the premium reduction stimulus?
Re: my last comment about people on SS disability, please email me if you can help, at rita.l.case@gmail.com or damaclease@gmail.com. Thank you.
RE: Cindy Tatum's husband being separated from his company while on FMLA - to the best of my knowledge from my husband's experience, THIS IS ILLEGAL; his company did this to him and they had to reinstate him. Check into this, in case this applies to you, and good luck.
I would like to see a reduction in Cobra premiums for someone who has had to stop working due to disability. when you get onto Social Security Disability benefits YOU HAVE A TWO-YEAR WAITING PERIOD before becoming eligible for Medicare. This is ILLOGICAL and a true financial hardship because of the reduced income. The disabled NEED Medicare right away, or a reduced Cobra premium. Understandably it would not be as much as for the unemployed. I speak on behalf of my husband who has to pay $500 a month for Cobra.
every working person deserves the same benifits for extended corba heath ins when on unemployment because what i get in unemployment payments more than 1/2 goes to heath ins and the ins companies make money off my unemployment which i need to feed my kids and pay my bills , igot laid off after june 1st 2010 and is not fair either all get the benifit or none
Can a person who loses their health benefits because they are on workman's comp qualify for the cobra reduction? I was hurt in July of 2009 and was unable to afford the cobra that was offered to me. I am still on workman's comp and have no health benefits. Please email me at mairlee2001@yahoo.com if you can help me. Thank you, Mary
The company my dad has worked for for over 10 years recently laid him off in January. He was in the hospital from October 20(?) until December 23. COBRA says it will not cover any of us because the company is going out of business. If anyone has any advice or suggestions, please email me at hayleydenice@live.com
I had to go on FMLA for surgery Nov. 23rd and have not been paid since. To make matters worse, I received notification from my employer that I was seperated on Jan. 5th, 2010. I am (was) the only employed insurance person in the family. Would I qualify for the stimulus?
Kathy - on Page 2 of this article is a phone number you can call to speak with a consultant about the COBRA premium reduction. They will be able to answer your question about the vacation time. Best wishes.