COBRA Premium Subsidy is Part of Stimulus Package

It’s also important to note that these subsidies incentivize something that, essentially, makes employers and health insurance companies *lose* money. This is because those that elect to purchase COBRA usually have a need for it, resulting in adverse selection. In essence, you get all the individuals with expensive treatments and long-term care needs but none of the healthy twenty-somethings to balance it out.

I can’t recall the source, but I read somewhere that the average per-person claims and expenses cost for someone on COBRA is 130% of what they put in, where a company is only allowed to charge 102% of their expiriring premium (plus a 2% adminstrative fee), meaning that there’s an average loss of 26% PER PERSON on COBRA. Again, I can’t place the source, so grain of salt, but this makes perfect sense considering the above.

While the argument can be made that subsidizing it means you’ll reduce the adverse selection problem, I think it’s much more likely that it will only exacerbate it. This means that it will have upward pressure on the premiums charged to employers, meaning it will have upward pressure on premiums charged to everyone else.

if we can qualify for one year of unemployment insurance, why the hell are we left off of the stimulus package. my husband got laid off in june, i got laid off in august, and we pay $1145 a month in COBRA. We’re screwed once again.

Catherine, I believe you will qualify for the 65% subsidy because you have COBRA now. I believe Bruce might have misspoken. The way I understand it, those who were laid off after August 31st but didn’t elect COBRA will have a new special 60 day enrollment right, but (like you) they will only receive the subsidy on premiums from March thru December 2009.

So if I understand this correctly. I was laid off Jan 7, I carried the ins. for myself and my children. I am scheduled to receive my Cobra notification by the end of February and have 60 days to decide. Under this stimulus I can elect the Cobra and have 60 to 65% of my 800.00 cost subdsized. This help is available only thru December 2009? Also, how are companies notified of this and made to comply?

To clarify, Linda and Catherine: I did not speak at all as to the eligibility of those on COBRA or any time frames to sign up or such things. My comment was purely about the macroeconomic effect of this COBRA subsidies, not the particulars of how to take advantage of it. Apologies if I was misunderstood.

How do we take advantage of this benefit? Do we continue to pay these exorbitant rates and get a refund or do our preminums decrease as of today????

I’m in a quandry as to COBRA. I lost my job effective January 16, and haven’t decided what to do. Coverage for my husband and myself was quoted at $982/month. When my husband retired (at age 50) We rolled into my company’s policy. We had attempted to obtain individual insurance but were declined because in the year before his retirement I had seen a doctor for a scrape on my arm after a fall, and my husband has controlled high blook pressure and high cholesterol. We only see the doctor when we need to, which is probably once a year. The insurance companies have impunity to deny you for ANY reason they want to. They are a business, but they are not in the business of health care.

I don’t like being without insurance (I mean, who knows what can happen?) but I hate paying so much. The stimulus subsidy makes it more palatable, but there has to be a better solution out there. Why don’t states negotiate with insurance companies to create a “group policy” for those on unemployment? Make it a higher deductible, and allow waivers for preconditions. But, make it affordable. What a pain.

My husband is retiring in May and will lose our joint health insurance except for Cobra. Will we qualify for this subsidy? Also, he can get medicare in 1 year when he turns 65 but I am only 59. What happens to my coverage when he goes on medicare?

Thank you for the comments.

First, details on the hows, whys and whens are not solidified on this part of the plan. I will look into it in greater detail.

Unfortunately, on the medicare issue posted by Joy W., Republican legislators opposed a provision that would extend COBRA coverage for a long period (5 years in some proposals) to those with a qualifying event (lay off, etc.) just prior to being eligible for medicare.

As to Bruce’s comments, I believe the 130% figure cited is an industry statistic and is heavily weighted with administrative costs. But, I agree that, with the lack of healthy workers in the pool, COBRA benefits may be a money loser.

So… what to do. How about universal health care, cradle to grave, without regard of geography, job, socio-economic status, funded by a commitment to fund it, elimination of tiers and tiers of middlemen, and elimination of all other government and state programs in favor of one payer – one plan and one group. It would eliminate the mobility of labor problem allowing workers to go to jobs where the jobs exist. It would take care of legacy costs of retirees that are destroying any industry left in the U.S. And, would help small business by lowering costs and giving the employee a portion of the responsibility. Finally, in forty – fifty years, as those of us born from 1945-68 fade away, U.S. population decreases and the costs of retirement/health care for this huge bubble of population dramatically decreases, our grand-kids will live with a stable, well-funded, health care system in a country where one can grow a family or a business without worrying about “benefits.”

Just an idea.

Why doesn’t Joy W.’s husband and other people work for full benefits to at least age 65. I can’t imagine anyone retiring voluntarily in this economy before the age of 65 and then wanting the burden of his/her healthcare needs and those of his/her family to fall on others (either the government vis-a-vis Cobra or those who are still employed beyond the age of 65)! Does Joy have a job? If so, perhaps she can obtain health insurance through her employer or a separate provider. If not, perhaps she can get a job that offers insurance benefits. I, too, am close to age 65 and in jeopardy of being laid off in this economy. Come on people. Let’s stay off the dole.

Well I do not think Joy was suggesting “going on the dole.” I believe she was asking if she would be eligible for a subsidy when her and her husband choose to purchase COBRA coverage. And, to update my previous answer, I believe the answer is no. Other sources (and my preliminary review of the 1200 page Stimulus Plan – here is a summary) indicate that the subsidy is available only for involuntary job loss. It does not appear that retirement qualifies.

I am the CEO of the largest full-service diabetes assistance organization in the country. I cannot even count the number of people we help now that have been laid off and cannot afford COBRA payments. And, these same folks are not eligible for state high-risk insurance pools because most states require you to exhaust COBRA benefits first.

Individual insurance policies are expensive, rates can go up without warning, and if you have a preexisting medical condition like diabetes, forget private insurance – you will not get coverage at any rate.

Even COBRA plans, which are for plans covered under ERISA law can make it hard for people to actually get treatments they need even when they have insurance (and you cannot sue an ERISA plan — we can thank insurance lobbyists for that one).

If you think the cost of subsidizing COBRA is going to hurt more than help, please think again. People still end up in the hospital whether or not they have insurance. The cost of their care is then passed on to us all and much is higher because at least insurance rates are contracted and lower.

I always, always tell our clients to opt for COBRA even if it means hard times. If you are COBRA eligible and do not opt for it and let insurance coverage lapse, even the healthiest of people will become uninsurable. A subsidized plan will allow more people to continue with insurance benefits and close a loophole insurance companies have used for years as an excuse not to insure anyone.

And, for the record, we help more people over age 65 in the Medicare Gap. But the second largest population we serve is young adults aged 19 to 25 than any other age group. Kids that turn 19 are dropped from their parents’ plans. When they head off to college (instead of working full time to get benefits) they have a near impossible time getting any insurance at all.

I am thrilled to see the insurance situation is finally being taken seriously!

How does one apply for the subsidized benefits? I have been laid off as of August 2008 and have been paying into Cobra as of September 1st 2008. Am I going to be receiving a refund (credit) for those months I have already paid in accordance the 65% subsidy? What will happen for my March 1st payment? Is there action that I need to take or will this happen automatically? Thank you in advance for your help

COBRA Stimulus package.

The problem with COBRA is it is a temporary program. Encouraging (subsidy) people that are insurable to select COBRA v. purchasing their own plan is not smart use of tax payers money.

What happens to someone on a COBRA plan who gets ill or injured during the last month of coverage? What if the illness is cancer or an injury that requires months of therapy will COBRA continue to cover the insured in the 19th month? If a person becomes uninsurable while on COBRA what protection does the consumer have?

Why does our government deliberately hurt people when it trys to help them?

COBRA has a place for people who can’t get insurance and are trying to get benefits through another job.

If the government was not beholden to interest groups it would give the individual the same tax break businesses receive today for providing health insurance.

Imagine if everyone had their own insurance policy and could move from job to job with their own insurance plan. Many people considered uninsurable today would be insured. You know the people downsized, people who had a health issue like heart attack and didn’t return to work etc.

this is great help but my cobra payment is $380 now, will i be sent a new premium or do i need to call someone.
Thanks you are a great AMERICAN

Linda,

I am not sure if you are correct. I was told by my company that I would not qualify for the Cobra Stimulus package because I was laid off prior to Sept. 1, 2008. I have been paying $455/mo for Cobra and I am livid that I missed this package by one day. Diane

My divorce decree is issued on 3/10 which means I will have to go onto spousal cobra. My premiums will increase by $400 from what I currently pay. The stimulus is for unemployed individuals but here’s my question. If my Cobra is through my spouses employer, and not my own, but I am laid off with my employer will I be eligible for the subsidy?

Again thanks for the comments.

Please note my next post addressed some of these questions.

Dianne and Linda, I think you both are right in part and your questions are good. The actual wording says “COBRA eligible” after September 1, 2008. This begs the question: If you were laid off in August 2008 and had already paid through your employer premiums for August 2008, you would be “COBRA eligible” after September 1. So, one could argue you would be entitled to the subsidy.

Also, for all the people asking about rebates. No cash goes to the employees and this is a forward looking subsidy for payments after February 17, 2009 to employers or plans. The employers and plans will pay 65% going forward in the covered period and receive tax credits on payroll taxes.

Greg, Linda, Diane, et al, I read your comments with great interest. Like others, I was laid off in July 2008 and have been paying into COBRA ever since. The stimulus package suggest that the only beneficiaries of the COBRA subsidy are those employees laid off from Sept 1, 2008 leaving me and my family without any financial assistance from the stimulus package. I’m hoping(and praying) that those families and individuals will somehow benefit from the COBRA subsidy. I still feel like we fall outside the parameters. I did contact my congressman to try to get clarification on this issue. It’s still unclear to me how/why Sept 1, 2008 was selected as the cutoff for the COBRA subsidy. There should have been some consideration for those who were let go by their companies prior to Sept 1. I would have understood some sort of sliding scale, perhaps, 50% subsidy for layoffs occurring between June – August, for example. I would much rather have a FT job but short of that, my family could benefit from some assistance from our govt.

Eric, Greg, Linda:

I found a site “Congress.org/Home” that allows you to write to the President and your State Senators regarding any issues that you may have. I wrote a letter to the President regarding the Stimulus/Cobra assistance package and the arbitrary cut off dates, so we will see if I receive a response. I too hope that I get back to work soon because Unemployment benefits just are not covering my expenses.

Here is another perspective people:

Businesses owner who, because of the economic downturn, had to layoff 10 people on Sept 1 of 2008. This business, already facing a cash flow crunch, is now on the hook to cash flow 65% of those cobra payments until the tax credit takes effect next year. Small business now out of business with the rest of its 45 employees.

Thanks Obama, I hope you all enjoy your “free” healthcare!

@matt

Thanks Matt, we will!

Scott, you are dead on with your comment about this resulting in many more Americans joining the ranks of the “uninsurable”.

This is so typical of liberal thinking that has swept across the nation lately. While the concept of “lower cost COBRA insurance” sounds good, the long term effects are devistating. People need to get back to taking care of themselves (if possible of course), and quit expecting someone else to do it for them!!

Ok, I’m off my soap-box now.

Bruce: Perhaps if many of the private companies didn’t age discriminate, we’d have fewer older people on Cobra and an even balance of younger victims of the economy.

Matt: You can thank George Bush for all the people that are out of work who need Cobra. He’s the one that sent the most jobs out of the country and he’s the one who dragged his feet on stopping this massive downswing and high unemployment rate. Put the blame where it belongs instead of Obama who’s been president for about 1 month so far. It’s the Republicans in the Senate who cut aid to the middle-class as much as they can, yet they had no problem handing over about 350 billion to banks w/o any regulation. That wasn’t only stupid, it was criminal. And now you’re complaining about the person who’s attempting to fix the biggest mess our country’s been in. As far as I’m concerned, whoever voted for Bush in the second election is as much to blame for this as the former administration. Think and educate yourselves before you vote about how policies will affect you. President Obama is trying, but the Republicans want him to fail, which means they don’t give a hoot about you either.

its great to hear about this helpfull part of yhis stimulis package, something the gov. does wil finally, help me i have been,paying6oo a month,for cobra after being termanated for having a stroke after 20yrs with the same co. i had the stroke aug of07. i never in my life got anyhelp from the feds. only lots of taxes, being a single guy with no kids. i see there is info availble to employers,but how do i find out how to get this help. god bless anyone out there that can give me a few tips,ty, phil in milw.wi.

I become unemployed on Jan 8/09 and we must have COBRA – paying $1090 a month. I hope we could find out – SOON – how to get subsidiary from the stimulus plan. I sent an email to the “recovery.gov” to find out how to help this assistance: So far, no response.

Thank you all for your comments. It is so helpful!

I was also laid off prior to Sept. 2008, and pay $1018/month for Cobra. The date is arbitrary, and I want to do something to get relief for those of us in the boat.
What can I do to make this happen?

Employers must notify eligible ex-employees by April 18 of retroactive 65% subsidy entitlement, effective Feb. 17 (when Stimulus was signed). Cobra premiums will fall to 35% of prior rate. Eligibles who’d not previously selected Cobra will be given a new, special 60-day enrollment election period, starting on the day of notification. Any gap in coverage between end of group coverage and Feb. 17 effective date of new Cobra coverage will not count as a break in coverage for purposes of a pre-existing-condition disqualification by a future insurer). Subsidy will end after 9 months or, sooner, whenever eligible person becomes entitled to other group coverage or medicare. Eligibility is phased out for singles earning $125,000 to $145,000 or joint filers earning $250K-$290K in the year of subsidy (2009 or 2010).

Thanks to all your comments. I am ready to send in my next COBRA payment and am trying to figure out if I should just send my former employer 35%…I don’t want them to cancel me for “non-payment”. As an aside, my employer fired me with no cause and I live in an at will state. Basically the company was moving in a more corporate direction and felt it necessary to slowly but surely get rid of the “old-timers” so after 8 -1/2 years of late nights, answering alarm calls at 1 am and glowing reviews I was fired at 5 PM on a Thursday night. I have to admit I’m rather happy my employer is going to now have to pay my COBRA – it will help make up for the 45 days of sicktime that I accumulated over the years and lost when I was fired.

Also, perhaps it’s time we all stopped blaming each other and tried to pull together to help fix this lousy economy. I for one am going to keep continuing to pray – He is the only real hope at this time!

Good luck to you all!!

So I was laid off mid January, I immediately signed up for a basic individual health care plan because I didn’t want to pay for COBRA. My individual plan started on Feb 1, the same date as COBRA would have. I was going to agree not to elect it but hadn’t done so yet, but with the new stimulus package I’d rather select COBRA at the 35% rate than have my individual plan. If I do so I would technically be on two health plans for the month of February, does anyone know if that would be a problem?

I was termjinated on May 24, 2008 with the reasons there were some complaints about my work, I was not learning fast enough and basically “JOB IS JUST NOT A GOOD FIT”. I was not even allowed to know who complained and what the complaints were. Because of the date I don’t know if I qualify for subsidy but I have,so far, I have somehow, out of necessity paid my premiums. How do I find out if I qualify?

I got my Cobra notice the middle of
August 2008. After a month or so I decided
against Cobra. I am now paying $184.00
month for health insurance. Can I still
qualify for the 65% subsidy or am I out
of luck. Need answer fast. If I am
elgilable who do I talk to to get forms.

I just need to know one thing.Where do I go to find out more about the goverment paying 65% of my corbra?I was laid off in Dec.2008.I found out I had cancer in Nov. 2008 and needed 3 surgerys.I had no choise but to pay thoese high premeum,or the hospital would not touch me without 30,000 dollars.So please tell me where I need to go and what I need to do to get that 65% help?
I Thank You Kindly,
Chris

Richard, you seem to know quite a lot of what is expected of employers regarding the Cobra subsidy….what will happen to us that started paying for Cobra on September 1st or in prior months? Also, I need to comment to Scott and Mark….in my State you have no choice but to elect Cobra, which by the way is always cheaper than a private plan offering an HMO. If you have a serious illness, I believe that your Cobra plan can be extended since contracting with a new Insurance Company will not pay for a “Pre-Existing Condition”. Mr. Law thank you for your comments, they were very imformative.

Adding this extra burden to employer just means they are going to stop offering health insurance.Help’s Obama nationalize health care.welcome our next disaster.

Please join us in asking Congress and the Obama administration to eliminate the arbitrary September 1, 2008 cut-off date and 9 month limitation of assistance by signing our petition at http://www.ipetitions.com/petition/cobrareform and telling your friends about our efforts.

What I don’t see being discussed is whether or not your previous employer has to participate in this stimulus plan. What kind of tax credit are they getting and when are they getting it? Does the company have to comply for the 9 months?

We signed up for the stimulus! Wahoo was a break and I’m taking it! Is this Obama going to want us to pay tax on this?

If you go into the Department of Labor website or the IRS website you can find out all the facts about the COBRA Stimulus package. Basically if you are involuntarily laid off between September 1, 2008 and December 31, 2009 you will be eligible for the 65% subsidy unless you exceed certain income levels. Also if you were discharged for “gross misconduct” you will not be eligible for the plan. It will be the employers to notify the eligible employees by mail no later that 69 days after the bill was signed on February 17. I would think that most employers are waiting until the Department of Labor releases a suggested form letter to be used to notify the eligible employees and their qualified dependents. The employers will get a credit on their Federal payroll taxes to recover the cost of the 65% subsidy. Again to to the DOL website or simply go to Google and type COBRA stimulus and you will get all kinds of information.

After 34 years with my employer my job was eliminated. July 1st., 2008 however I received 6 months severance pay. I’m responsible for my cobra insurance as of January 2009 $380 per month plus deductible on my prescriptions approx $2000 per yr. Now the question is do I fall into the job loss as of January 1st 2009 when my severance pay ended? Missing out on the cobra stimulus. Why is everything so complicated.

I resigned my position with one company to take another position which I was recruited for by the other company. After 9 days the new company decided I was not a fit and terminated my employment. I elcted Cobra form my first employer, becasue would be 90 days before coverage with the new company. Since I was involuntarily let go-do I qualify for the 65%?

what of a divorced individual now on cobra because of the divorce

I was laid off January 9, 2009. I have had diabetes for 29 years. I was laid off with the new people. I worked their 8 years. They told me that its not the diabetes itself but the long term effects and suggested I should go on ssi. I have worked all my life and have to be on cobra. My insulins and test strips are very expensive. I am 56 and not sure what I’ll do now. Robin

I was eliminated from my position December 30. I was advised that I had 60 days after notification by COBRA to accept/decline insurance and that if I accepted I would be asked to pay for those 2 months of insurance and going forward pay monthly. Just received billing from COBRA and they want Jan Feb and March payment by April 1. Do I have to pay for those months or will I be offered a new 60 day enrollment period? I am 58 years old and in excellent health though approaching the time/age in life when I hate would be out of work and without health coverage.
Greg Boop your replies are right on target.
Would someone let me know what to do. The utility bills are begging for payment.
Thanks for help.

I am a small business owner, we had to lay off due to the economic downturn. I understand that the stimulus plan will provide a tax credit for 2009 to cover the employer portion of the Cobra premium. If this is correct, where do we get the cash flow to handle 65% of our former employees cobra in the meantime? Is it possible for the employer to wave the 2009 credit and allow the cobra stimulus to pay the Insurance company directly?

Whay does this only apply to employees laid off as of Sept.? I was laid off Aug. so I guess itdoesn’t apply for me. That figures… I would fall between the cracks.

I was laid off in January 09 and was told by my company that they did not have to supply COBRA because they did not have 20 employees on the insurance plan. However, they do have more that 20 full time employees. I got “continuation coverage” from my employer’s health insurance provider. I am paying a higher premium than I did when employed. How do I get the 65% stimulus help? Does my past employer have to comply with COBRA?

I was terminated in January 2009 for complaints of not performing the job up to their expectations. I am paying $450.00 for Cobra & is due for my next payment. Should I pay the full premium? How will I know if my company will comply with the stimulas plan or let me know if they will and when it will take effect

I was let go from my company on Jan 2, 2009. Cobra for my family was going to be around 1200.00 for the plan I had at work. My husband’s job offered health coverage but at almost twice as much as I was paying, but still much less than 1200. And now I am informed about this cobra stimulus piece, which would make my premium around 450.00, close to half of my husband that we are now on. Both plans were an HSA plan, with high deductibles, we have paid close to 2000 out of pocket so far this year. Do you get credit for that money if you go back to an HSA plan, or do we have to start meeting our deductible all over again? I hope this makes sense.

Thanks

I was receiving COBRA, but the company that I worked for closed, so they are not required to offer it going forward. I am now on the Healthy NY plan. For those of you living in NY (I think other states have similar plans), the plan gives you a choice of many plans, offers hospitization, doctor visits, and prescription drug plans, and is cheaper than the COBRA plan that I was on. Check it out. http://www.ins.state.ny.us/website2/hny/english/hny.htm

I like many others are paying high cobra premiums and on unemployment and its not fair that the cutoff date was september 2008. I was born and raised in this country , so where is my relief.

So… Many good comments. Lots of venting. I understand, my premiums jumped to 750 a month. My unemployment benefit is 475 a week. How shall I pay my bills.

Finger pointing does no good for three reasons. First we can’t just turn the clock back, second there are several contributing factors and third many of these things have been tried before.

There is a philisophical question here that most people want to ignore. It seems that every business expects double digit growth. More is better and greed is good. So industrial businesses want that number, investors want that number, insurance companies want that number and hospitals want that number. Is it a surprize that costs increase for everyone who is “downhill”?

Simply funding the problem by government payments of any kind is just passing back to us, the taxpayers. The buck stops here with you and I.

Now, we could say that funding healthcare through the federal government is a way to distribute the cost. But isn’t that what an insurance company is supposed to do? The question here is how to distribute risk and cost so that no-one dies or starves.

I don’t have the answer all neatly laid out, but I’m thinking that perhaps greed is not good.

There were many questions as to how to handle the employee portions of 35%. How do we handle this? On the next payment do we only send 35%% If we are eligible do we need to contact anyone? Help us out here. Give a definite answer or tell us where to find the answer.

I’m waiting on specifics also on how this will be carried out. I’ve been able to get zero answers from my HR department since being laid off. Please help with information on how this process will work, no guesses please, someone who knows for sure please comment.

Anita and Alvin (and others):

There are now several posts on this Guidesite with specifics and links to both the Department of Labor and IRS where specific information is available. Click on “my blog” above or go to the “landing page” of this site and review some of the posts.

Thank you for the comments all!

My Cobra benefits ended on Dec 31, 2008. Am I eligible for continued coverage of Cobra under the new stimulus package? How do I find out this info?

No where yet mentioned that you only get the reduced 35% rate if your employer had at least 20 employees… so alot of us don’t even qualify to get this help.. much needed too since small businesses have even smaller severances! Our family’s COBRA payments will be $1700 per month!

I have been unemployed since June 30, 2008. However, my employer continued my health insurance coverage until August 31, 2008. I started COBRA payments September 1, 20008. I recently contacted my employer to sign up for the 65% reduced rate and they told me that I am not eligible because I have been unemployed since June 2008 and NOT September 2008 as the stimulus package states. Is this true that I will not be getting this reduced rate? If so, who decided this cutoff date and who do I write a grievance to?

I keep on hearing about “help for the employers” but what about help for the laid off employees? I was laid off from a large Computer Company in Mar. 09 and I elected COBRA for my son and myself however my ex-employer has sent me a bill for the full premium. When I contacted them they said that they do not know how to implement the new process…. so in the mean time, I HAVE to pay the full premium until they can implement a process to accomodate the stimulus package. I am a single Mom and now an unemployed single Mom…. HELP!!!

what if i opted for cobra but missed a payment because I could not afford the premium? is there a chance for me to opt in again now that the stimulus will cover a large percentage making it affordable?

Do not worry

“Another problem is that the law puts the administrative burden on employers.”

I say good. I was laid off from a large company. Only Americans were laid off
and they kept the “outsourced” people from India of which many make less than minimum wage. They lay off Americans and keep those that put almost nothing into our system. Plus, the company avoids taxes that they must pay for American workers. My company should pay the whole amount with no tax credits!! (small businesses employing Americans are another story).

Gena: Your company is full of beans (the polite term). Their claimed ignorance of the law is a line they’re handing you, because the information is readily available, both online and by phone from COBRA. Below is what I took off the COBRA website. Your company or the administrator it uses to handle COBRA is obligated by law to pay 65% of your monthly COBRA payment, and they are reimbursed by the govt. with a tax credit.

“The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months for those eligible for COBRA during the period beginning September 1, 2008 and ending December 31, 2009 due to an involuntary termination of employment that occurred during that period.”

Ali says: “I, too, am close to age 65 and in jeopardy of being laid off in this economy. Come on people. Let’s stay off the dole.”

Hey, Ali, I was planning to work until 66, the age at which I could have received full SS benefits. Unfortunately I was laid off late last year at age 64. Try finding a corporate job at age 64, especially in this economy. My wife is 58, and we both have pre-existing health conditions, as so many people at our age do. Without the COBRA subsidy we would simply have to do without health affordable health care.

Like so many Americans who have worked all their lives and are proud of the contributions they have made, you don’t want to start taking handouts. I don’t blame you. Neither do I. But I sincerely hope you are not faced with a layoff before you can at least get Medicare, because unless you’re lucky enough to be very well off, a serious illness, even if it’s short term, will ruin your plans for retirement and make the rest of your life a financial nightmare.

In my view, universal health access to affordable care is not a handout. It is the minimum hallmark of a sane industrial society.

I am eligible for the new Cobra subsidy but I haven’t heard a thing from my former employer. I thought it was their responsibility to contact me with an application and information by April 18, 2009. I want to get my application in as soon as possible, but if they don’t send it what do I do? Any help would be greatly appreciated because I can’t afford the 100% that I am paying now…

Who and how do we register a complaint to get the ball rolling? I have paid Mar./Apr./ now I have May’s bill. Still no reduced payments. Talked to insurance carrier to no avail.

I have been laid off as of August 2008 and have been paying Cobra as of September 1st 2008. Am I going to be receiving a refund (credit) for those months I have already paid in accordance the 65% subsidy? What will happen for my future payments? There is a very grey area here and I’m not sure who I should contact to finally get an answer on this. I’ve attempted to get in touch with my congresswoman in NY about this matter but so far no luck to date. Is there any action that I need to take or any advice that would put me in the right direction? Any help would be greatly appreciated. These monthly payments are killing me.

Thanks so much,

HaL

My client’s husband passed away in December 2009 and now see’s left without a health insurance plan. The widow was going to pay for an individual plan, but it’s too expensive. Is she eligible for the Cobra subsidy from her deceased husband’s former employer?

Oops, meant to type December 2008, not 2009!

My position is being retitled from a Superviosr 1 to a Supervisor 2. If we do not meet criteria we will lose our position. Is this considered a lay off or will we be expected to take a lesser job within the organization. Will this be a Cobra Stimulus eligible circumstance?

1) My wife was laid off end of March 2009, her company had less then 20 people is she still eligible to get this refief for Cobra.
She will have to pay over $700 for herself and her son, according to United health care cobra.

2) I am disabled have had Cobra since April 2008 am I eligible to get this relief on my Cobra. I pay 462 a month

To Mr Bruce R. Stein:

The logical conclusion of your argument can only be “Let sick people eat cake”. If the private sector cannot insure everyone, then perhaps they need to be put out of business by a single payer system like medicare. Then you can find out what the unemployemt line is all about.

In response to Bruce Stien:
Having Cobra and insurance in general so ridiculously expensive forces the 20 somthings out of the program, so to say that it is because of the people who really need the insurance enrolling in the program creating the unbalance is at best just part of the problem, if not the main cause of the problem. If it were not for the absurd overhead in the insurance business I suspect most of the people who are healthy would buy insurance. As usuall conservatives only consider the facts as they support their own agenda.

My husband just got his papers from Cobra and it only shows the reduced amount for the subsidy for 2 months then it goes up to the original Cobra amount? Can anyone tell me why?

My husband has been diagnosed with a rare blood disorder and we are now going from paying our own preiums to COBRA and need to know if we are qualified for the subsidy as well? Does his company have to offer us COBRA? They did and now they are trying to change their mind because he has a perm. disability and now we can not find any medical for him in our state for at least two yrs. that we can afford, so he might not make it thru his condition. We need help!

Finally got the paperwork for the new Cobra subsidized benefit plan. I did not elect coverage Jan 1 because of cost issues. I just signed up for the new plan because of the 65% decrease. I received the initial paperwork end of April, sent in the application immediately and received my first bill this week. Imagine my surprise when I found out my “9 months of subsidized coverage” is retroactive back to March 1. And, i don’t have coverage if I don’t pay from March 1 through June 1. Effectively, I’m paying a decreased rate for 9 months of coverage (March thru November) but can only use the coverage as of June 1. As much as I appreciate the reduction for Cobra, I’m paying for 9 months but actually getting 6 months. It angers me but i still feel grateful for something.(typical gov. mess)
For those of you who need info on Cobra, if your employer had a payroll company handling your benefits (such as Paychex, ADP), contact them directly for information. Or go to the Employee Benefits Security Administration’s Web page at dol.gov/COBRA. FYI-union members are not eligible, nor are small companies with less than 20 employees.
To Nancy Roberts
Call the Department of Labor at 866-444-3272. I don’t believe the company has the option of withdrawing Cobra if your husband was terminated involuntarily. They should be able to give you the facts.

Get this – I was laid off May 08 and told my COBRA would run concurrent with my lay off date. I had a severance package so I didn’t need to pay my whole premium until November 08. I e-mailed our Benefits dept when I first heard of the discount, rec’d back an e-mail stating I would get the discount from Nov-Mar since my employer was subsidizing my COBRA during my severance. THEN I get this e-mail, apologies, we didn’t have details and seems since I was laid off before Sept 1, I don’t get this discount – SORRY! I asked since I wasn’t responsible for the whole amt until November, why I can’t qualify? I’m trying an appeal to our corporate HR since benefits originally told me I WAS in line.

I have the same question as other commenters, if the media is reporting that this “recession” actually began in 2007, who picked Sept 1, 08 as the arbitrary date for this?????

i sent in my form 3 months ogo to see if i qualify for the 65% cobra plan.I still havent heard a thing. I have to send another 704 to them next week.OMG how long does it take to decide? It is taking all of my unemployment .I need that refund now. Thanks Cynthia

What happens when your nine months are up from the special Cobra discount? Are they going to extend it-I am still unemployed with no job leads yet-I read in a previous comment that the GOP did not want to extend the special cobra discount-are there any updates in extending it?
Thank you.

I was laid of September 15, 2007. Did NOT have insurance from that employer, tho. My insurance was provided thru my ex-husband’s employer, and my divorce was final November 2008. That is when my 500 bucks a month for just MY ins. began.
It is taking ALL of my unemployment !
I only have 8 months of COBRA left now.
Do I qualify for the stimulus help, and if so, HOW do I get it? Whom do I truly contact?

Is it truly Available? Is this just another “looks good in presidents speech for promises, but good-luck-suckers” ,
(ex-husband is US post office worker)

I am an accounts payable clerk. The company I work for is moving A/P to another state. I want to know if I go ahead and take early retirement, I’m 62, will I be eligible for cobra and will the 60 or 65 % stimulus still apply to me?

If the people that were laid off before september 2008 can’t get the cobra the 60-65% off then no one should get it.

They, whoever, They are, need to listen to what people are saying who are laid off and need to extend the stimulus package for cobra from 9 months to the 18 months-after the nine months and especially still not employed or without health insurance, how could anyone possibley pay the 100% and more-please extend the cobra to 18 months to the people who have worked and always paid their taxes, etc.,

I was laid off July 2009. My company couldn’t give me any answers on the 35% stimulas for COBRA, so I called the insurance company. Numerous times….

They were able to give me more information; my advice is to call your insurance company if your previous employment is unable or unwilling to help you. It’s sad and frustrating that some employers can’t help you, but I suppose this is new to them too.

Also, my insurance commpany told me the 20 employee rule didn’t apply to my employer; possibly because it was a municipality? Just a guess. Best wishes to all out there.

I was just laid off this Month, October. The way I read everything from the government, if you were laid off up to December 31, 2009, you are eligble for the subsidy.

I don’t read anywhere that the subsidy benefit ends on December 31, 2009. If I sign up this month, then shouldn’t the 9 month period go from 10/09 – 7/10?

I am in the same boat as Ruth, who is asking if the 35% COBRA will be extended beyond the nine months. I am still unemployed and my subsidy ends this month. Help, what am I going to do?

Need help – any help with COBRA for individuals laid off between Jan 1, 2008 & Aug 29, 2008 ?

My 9th month of COBRA ended in Dec. 2009. I was told by my COBRA rep. that they hadn’t yet heard anything about the 6 month extension at that time. I just received a letter the week of Feb. 8, 2010 stating that I was now eligible to be covered for 6 more months. BUT, I have to pay for Jan., Feb., & March and this will be due by Feb. 17, 2010 which means that I have missed out on the last 3 months of real coverage. I asked COBRA what date they were informed of the extension and they told me Dec. 2009. I asked why I wasn’t notified then so I could have extended my coverage and they said it must have been due to either the Federal Govt. dragging their feet to make a decision, or the company didn’t get notified in a timely manner, which meant I didn’t get notified in a timely manner. IS THIS LEGAL? What was the date the companies were notified and what timeframe did they have to notify their ex-employees? And how can they expect someone who is still unemployed to come up with $500 in a week for goodness sake. Please help.

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