|
A provision
within the
recently enacted
economic
stimulus package
makes it easier
for some of
those people who
have been
adversely
affected by the
economy to both
qualify for and
afford COBRA
continuation
coverage.
According to the
Department of
Labor, "The
American
Recovery and
Reinvestment Act
of 2009 (ARRA)
provides for a
65% reduction in
COBRA premiums
for certain
assistance
eligible
individuals for
up to 9 months.
An assistance
eligible
individual is a
COBRA “qualified
beneficiary” who
meets all of the
following
requirements:
·
Is eligible for
COBRA
continuation
coverage at any
time during the
period beginning
September 1,
2008 and ending
December 31,
2009;
·
Elects COBRA
coverage (when
first offered or
during the
additional
election
period), and
·
Has a qualifying
event for COBRA
coverage that is
the employee’s
involuntary
termination
during the
period beginning
September 1,
2008 and ending
December 31,
2009.
Those who are
eligible for
other group
health coverage
(such as a
spouse's plan)
or Medicare are
not eligible for
the premium
reduction. Other
limitations may
also apply.
There is no
premium
reduction for
periods of
coverage that
began prior to
February 17,
2009."
Call our offices
(888.863.0444)
for more
information.
For more
details, click
on the following
links:
The Department
of Labor,
The Groom Law,
the American
Benefits Council,
Emerson Reid
and
the Financial
Directions Group.
COBRA Benefits
Affected by
American
Recovery and
Reinvestment Act
On February 17,
2009, President
Obama signed
into law the
American
Recovery and
Reinvestment Act
(the "Act"),
which includes
several
important
changes to COBRA
The Act provides
for a federal
subsidy of 65
percent of the
COBRA
continuation
coverage
premiums for
qualified
beneficiaries
receiving COBRA
continuation
coverage due to
the covered
employee's
involuntary
termination of
employment
between
September 1,
2008, and
December 31,
2009. |
