logo
g Text Version
Beauty & Self
Books & Music
Career
Computers
Education
Family
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
Money
News & Politics
Relationships
Religion & Spirituality
Sports
Travel & Culture
TV & Movies

dailyclick
Bored? Games!
Nutrition
Postcards
Take a Quiz
Rate My Photo

new
Bible Basics
Houseplants
Romance Movies
Creativity
Family Travel
Southwest USA
Irish Culture


dailyclick
All times in EST

Full Schedule
g
g Insurance Site

BellaOnline's Insurance Editor

g

Understanding the New COBRA


If you do not work in your companies’ human resource, department you are probably unfamiliar with the affect the new stimulus law has on the Consolidated Omnibus Budget Reconciliation Act (COBRA). However, if you are involuntarily terminated between September 1, 2008 ad December 31, 2009 this article will help to decipher new COBRA requirements.

On February 17, 2009, President Obama signed the stimulus law. The stimulus law included federal assistance for workers who lost their group health coverage after involuntary termination. Individuals who qualify as “Assistance Eligible Individual” under the American Recovery and Reinvestment Act of 2009 (2009 Recovery Act) are able to pay a reduced premium equal to 35% of the original COBRA premium for up to nine (9) months.

Here is an example:

The total cost of my group health coverage is $125.82. My employee portion is $27.06; my employer pays the remaining $98.76. If I were involuntarily terminated between September 1, 2008 and December 31, 2009, I could elect COBRA and pay $44.04 up to nine (9) months. Pre-2009 Recovery Act I would have to pay $125.82 plus a 2% administration fee.

The remainder of the premium will be the responsibility of the employer. However, the employer can claim reimbursement for the 65% that they paid once the qualified individual has paid their portion of the premium (35%). Employers will be reimbursed the 65% by claiming the credit on Form 941.

In addition, individuals who were terminated between September 1, 2008 and when the law was enacted, but failed to elect COBRA because it was not affordable, will be given an additional 60 days to elect COBRA and receive the subsidy. If an individual had elected COBRA and subsequently had COBRA terminated for nonpayment of premiums are also entitled to make new elections and take advantage of the premium subsidy.

Individuals are required to notify their group health plan once they become eligible under another health plan. Failure to provide property notification can result in hefty fines.

At this time, only group medical plans are covered under the subsidy program. If your group plan only offers dental, vision, counseling or referral services these (like employee assistance programs) are not covered under the subsidy program. In addition, the subsidy program does not include health care flexible spending accounts.

The information contained in this article is not intended to be construed as legal advice or a legal opinion. Discuss any questions and concerns with your human resource administrator.
Add Understanding+the+New+COBRA to Twitter Add Understanding+the+New+COBRA to Facebook Add Understanding+the+New+COBRA to MySpace Add Understanding+the+New+COBRA to Del.icio.us Digg Understanding+the+New+COBRA Add Understanding+the+New+COBRA to Yahoo My Web Add Understanding+the+New+COBRA to Google Bookmarks Add Understanding+the+New+COBRA to Stumbleupon Add Understanding+the+New+COBRA to Reddit




RSS | Related Articles | Editor's Picks Articles | Top Ten Articles | Previous Features | Site Map


For FREE email updates, subscribe to the Insurance Newsletter


Past Issues


print
Printer Friendly
bookmark
Bookmark
tell friend
Tell a Friend
forum
Forum
email
Email Editor


Content copyright © 2014 by Denise M. Castille. All rights reserved.
This content was written by Denise M. Castille. If you wish to use this content in any manner, you need written permission. Contact Denise M. Castille for details.

g


g features
10 Things to Know About Buying Auto Insurance

The Policies You Need!

Details to Review About Your Insurance Policy

Archives | Site Map

forum
Forum
email
Contact

Past Issues
memberscenter


vote
Poetry
Daily
Weekly
Monthly
Less than Monthly



BellaOnline on Facebook
g


| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2014 Minerva WebWorks LLC. All rights reserved.


BellaOnline Editor