Frequently Asked Questions Answered COBRA
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16 February 2009
NEWS; Pg 24
526 words
Frequently asked questions answered COBRA
Jerry Geisel
COBRA provisions in the massive economic stimulus bill is by far the largest expansion in the 23-year history of right to health care COBRA. While the promulgation of Cobra in 1986, many employers by surprise, most employers are aware of the grant COBRA provisions of the American and Reinvestment Act of 2009, which is expected to receive final approval from Congress last week , whose president Obama will sign this week. The main provisions are well known COBRA: The federal government should pay 65% of the COBRA premium for employees laid off from 1 September 2008 through December 31, 2009. The grant is available up to nine months. But many other details and requirements are less known. To assist employers to meet, here are some frequently asked questions and answers.
Q: Does someone laid off from 1 September 2008, December 31 2009, qualify for the premium subsidy?
Yes, with two exceptions. Under the first exception, employees terminated for misconduct is not entitled to the grant and COBRA. In addition, the grant would not be available for laid-off workers with annual adjusted gross incomes of $ 125,000 for individuals and $ 250,000 for couples of the year or years of the grant is available.
Q: The grant begins March 1. Would individuals licensed since 1 September 2008, and have opted for COBRA is entitled to a subsidy for the months during which they have paid the entire premium?
No. The grant is prospective. It would be scheduled for coverage beginning on or after March 1.
Q: An employee who refused COBRA coverage before the date of entry into force March 1 qualify for the grant?
Yes. Employees laid off since September 1, 2008, would have a new law to register with the federal government to pay 65% of the premium. Beneficiaries have 60 days once they are reported to register.
Q: When will the premium of 65% of federal subsidies end?
The grant ends, if any of a number of events occur, including the beneficiary, to be eligible for health care coverage from another employer or Medicare. The beneficiaries would be required to inform their former employers of their new rights. It is different from the non-subsidized COBRA coverage when eligibility ends when the beneficiary is the new group coverage or Medicare. In addition, beneficiaries who received the grant to which they are no longer in law would be required to repay 110% of the government grant.
Q: How does the employer receive 65% of the COBRA premium paid by the federal government?
The employer would be paid by reducing payroll taxes, it calls the government. If this is not enough to recover the costs, then the employer to file with the Internal Revenue Service to receive the necessary payment.
Q: Should subsidy eligible beneficiaries enroll in the same health plan they were in before have been laid off?
Eligible recipients under the grant can choose the coverage plan in which they were entered last. The legislation also allows employers to offer plans that beneficiaries have the same or lower costs than where they were registered before being dismissed.
20 February 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
Terms and Conditions Privacy Policy
16 February 2009
NEWS; Pg 24
526 words
Frequently asked questions answered COBRA
Jerry Geisel
COBRA provisions in the massive economic stimulus bill is by far the largest expansion in the 23-year history of right to health care COBRA. While the promulgation of Cobra in 1986, many employers by surprise, most employers are aware of the grant COBRA provisions of the American and Reinvestment Act of 2009, which is expected to receive final approval from Congress last week , whose president Obama will sign this week. The main provisions are well known COBRA: The federal government should pay 65% of the COBRA premium for employees laid off from 1 September 2008 through December 31, 2009. The grant is available up to nine months. But many other details and requirements are less known. To assist employers to meet, here are some frequently asked questions and answers.
Q: Does someone laid off from 1 September 2008, December 31 2009, qualify for the premium subsidy?
Yes, with two exceptions. Under the first exception, employees terminated for misconduct is not entitled to the grant and COBRA. In addition, the grant would not be available for laid-off workers with annual adjusted gross incomes of $ 125,000 for individuals and $ 250,000 for couples of the year or years of the grant is available.
Q: The grant begins March 1. Would individuals licensed since 1 September 2008, and have opted for COBRA is entitled to a subsidy for the months during which they have paid the entire premium?
No. The grant is prospective. It would be scheduled for coverage beginning on or after March 1.
Q: An employee who refused COBRA coverage before the date of entry into force March 1 qualify for the grant?
Yes. Employees laid off since September 1, 2008, would have a new law to register with the federal government to pay 65% of the premium. Beneficiaries have 60 days once they are reported to register.
Q: When will the premium of 65% of federal subsidies end?
The grant ends, if any of a number of events occur, including the beneficiary, to be eligible for health care coverage from another employer or Medicare. The beneficiaries would be required to inform their former employers of their new rights. It is different from the non-subsidized COBRA coverage when eligibility ends when the beneficiary is the new group coverage or Medicare. In addition, beneficiaries who received the grant to which they are no longer in law would be required to repay 110% of the government grant.
Q: How does the employer receive 65% of the COBRA premium paid by the federal government?
The employer would be paid by reducing payroll taxes, it calls the government. If this is not enough to recover the costs, then the employer to file with the Internal Revenue Service to receive the necessary payment.
Q: Should subsidy eligible beneficiaries enroll in the same health plan they were in before have been laid off?
Eligible recipients under the grant can choose the coverage plan in which they were entered last. The legislation also allows employers to offer plans that beneficiaries have the same or lower costs than where they were registered before being dismissed.
20 February 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
Terms and Conditions Privacy Policy
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