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Do you qualify for a COBRA Insurance? Read on to find out
COBRA, Consolidated Omnibus Budget Reconciliation Act was passed by Congress in 1986 to provide the right to temporary continuation of health coverage at group rates. It allows workers to remain on health insurance plans offered by their former employers by paying 100 percent of the cost, plus 2 percent in administrative fees. However, a new law, American Recovery and Reinvestment Act, signed by President Obama amended the COBRA by offering a discount of 65 percent in lieu of the former 100 percent.
COBRA insurance can be purchased for an 18-month period, while a subsidy only for a period of 9 months. There are some basic criteria which need to be fulfilled in order to be eligible for a COBRA subsidy. You must have worked for an employer with 20 or more employees; you must have been laid off between September 1, 2008 and December 31, 2009; you can not avail the subsidy if you qualify for Medicare or a spouse's health insurance plan or if you were terminated due to gross misconduct.
There are three different government agencies which have jurisdiction over the COBRA supplement. If you work for a private employer, you can contact the Department of Labor; in case you are working for a nonprofit or a public enterprise, you should contact the Department of Health and Human Services; if you have any tax related issues, you need to address your problems to the IRS. If anyone has queries on the subsidies on COBRA, one can contact the Labor Department.
While addressing a crowd last week in Wakarusa, Ind., President Obama remarked, "Some of you know people who lost their jobs, were worried about losing their health care, couldn't afford COBRA - we were able to reduce their costs by 65 percent so they could keep their health care while they looking for jobs". The irony is that many unemployed are not aware of the discounts that exist, while some are given wrong information regarding their eligibility.
In case you had been laid off and can not afford COBRA insurance, check out with your human resource department and COBRA plan administrator to find out if you qualify for COBRA coverage or a subsidy.
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