COBRA is cut BY 65% for some, even if you turned it down before.

[Kber]

Here's the deal:
If you were involuntary terminated (this includes anyone let go for any reason other that gross misconduct,i.e. for theft or workplace violence) any time after September 1, 2008, you are eligible to receive a 65% subsidy for your COBRA insurance. The subsidy applies to any of your COBRA eligible dependents who lost their coverage because of your loss of employment.

The subsidy is retroactive to either February 18 or March 1, depending on how your plan worked.

If you are already signed up and paid the full premium for March and / or April, you will probably receive a credit. If you drop COBRA prior to using the credit up, you will receive a refund for the remaining amount.

If you dropped COBRA or never signed up, you can sign up now with retroactive coverage to either February 18 or March 1, again depending on your plan.

Employers had to April 18 to mail notices to their former employees who qualify for the subsidy. You have 60 days from the receipt of the notice to sign up. If you were laid off after September 1, 2008 and haven't received a notice, contact your employer on Monday.

Employers are responsible for putting up the remaining 65% of the premium, but they will receive a credit on their quarterly tax returns.

Even if you are already enrolled, you can keep your COBRA for 18 additional months from February 18 or March 1. However, the subsidy is set to expire December 31, 2009.

ALL THIS A POSSIBLE THANKS TO THE STIMILUS PACKAGE PASSED BY CONGRESS AND SIGNED INTO LAW BY PRESIDENT OBAMA ON FEBRUARY 18.

(I'm kinda in the HR Benefits biz, so I can try to answer your questions if you have any>0

[Ino]

1. Does this apply to COBRA benefits due to divorce?

I was covered under my ex's plan, and went on COBRA after our divorce in December. I'm self-employed.

[Kber]

2. Unfortunately no. It only covers you if you were involuntary termed from your job.

Sorry

[donco]

3. My son had a stroke Oct 19 2008

he is paying the full amount on his cobra. I wonder if he is eligible?

[Kdillard]

4. It couldn't hurt to ask.

[Kber]

6. If his former employer coded his end of employment as "involuntary", he might be.

The gov't hasn't defined "involuntary" very well, but you could make the case that he did not voluntarily resign. At my place of employment, we have a former employee on Long Term Disability and we decided to code her as an "involuntary" term, just to be safe.

I think you could definately make the case. Did he collect unemployment of any kind?

[donco]

9. No,he didn’t even apply

for it, he has some disability insurance that he has been paying into monthly for the last at least two years. Thanks for the reply; most of the spare time has been getting him back and forth from rehab.

[Kber]

10. You usually can't collect disability and unemployment at the same time.

Another reason to look into it is that, if he qualifies, his COBRA "starts over" as of February 18. From that date, he can continue COBRA for another 18 months, so even if the subsidy runs out at the end of the year, he can still have COBRA, until well into 2010. Otherwise his COBRA will run out 18 months from last October and, from what you write, he doesn't want to be without health insurance right now.

This is from the DOL website:
Q24: What can I do if my former employer’s group health plan denies my application for the premium reduction?
If the plan determines that you are not eligible for the premium reduction, you can request an expedited review of the denial. The Department of Labor will handle appeals related to private sector employer plans subject to ERISA’s COBRA provisions. The Department of Health and Human Services will handle appeals for Federal, State, and local governmental employees, as well as appeals related to group health insurance coverage provided pursuant to state continuation coverage laws. The Departments are required to make a determination regarding your appeal within 15 business days after receiving your completed application for review.

Note: Appeals to the Department of Labor must be submitted on a U.S. Department of Labor application form. The form will soon be available at www.dol.gov/COBRA and can be completed online or mailed or faxed as indicated in the instructions. If you believe you have been inappropriately denied eligibility for the premium reduction, you may wish to speak with an Employee Benefits Security Administration Benefits Advisor at 1.866.444.3272 before filing this form.
http://www.dol.gov/ebsa/faqs/faq-cobra-premiumreductionEE.html

I think it may be worth it to look into it.

Good luck!

Kber

[Kber]

11. Here's more usefull info

The IRS recently released guidelines about what is an "involuntary termination".

It includes this line:
• A termination of an individual while he or she is absent from work due to illness or disability;

Even if your son called up and "resigned" after his stroke, if he can demonstrate that he did so because he became disabled and couldn't continue to work, than I like his chances.

http://www.leclairryan.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=466

[AtomicKitten]

5. I paid $250/month for COBRA in 1994.

This new policy is a godsend to Americans. I am really impressed how mindful President Obama is of Americans in deep shit with their life circumstance, although he is often accused here of not giving a crap about the little guy.

[Kber]

7. It's really the difference between affording insurance and not for many.

I'd like to see it expanded, but I'm the first one to stand up and applaud a step in the right direction.

KB

[ChimpersMcSmirkers]

8. Change you can believe in.

[omega minimo]

12. Thank you for the info, people need to check the size of their firms for some of these benefits.

The 65% assistance applies to smaller companies but the retroactive application may not.

Thanks again for posting this. :hi:

[Kber]

13. I work for a larger firm, but I'm not aware of any exceptions to the retroactive part

I'll check it out though.

As far as the companies go, though, the premiums they pay are 100% funded by the stimilus and can be taken as a quarterly or even monthly tax credit, which is designed to help with cash flow.

[eridani]

14. I just got my letter on this Friday

Needless to say, I'm applying for the discount, although the extension really means a lot more to me. Since I'm not old enough for Medicare, I was slated to lose my doctor of 25 years after my COBRA ran out. With the extension, I get to keep him longer. My husband is over 65, and gets to keep our doctor regardless.

[Kber]

15. That's great!