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3 March 2009 Tuesday FINAL Editio

SECTION: MONEY; Pg 3B

LENGTH: 783 words


TITLE: stimulation to assist with COBRA costs; If the price you have kept the signature after the loss of employment, to reconsider the

Signature: Sandra Block

If you are out of work, a person - a parent, a colleague or a financial advisor - has probably emphasized the importance of continuing your health insurance.

Given the cost, however, that can not be decent advice if you have a trust fund that has not been torpedoed by the bear market.

The economic stimulus package signed into law last month, aims to address the high costs by subsidizing COBRA premiums for the unemployed. Under the federal Consolidated Omnibus Budget Reconciliation Act, or COBRA, the dismissed workers can continue their former employer for health insurance for up to 18 months, but only if they pay the full premium, more than 2 % of administrative costs. Average COBRA premiums exceed $ 400 per month for individuals and $ 1,000 per month for families.

The stimulation will subsidize 65% of COBRA premiums for employees who were dismissed between 1 September and the end of this year. If you have delayed the signature for the COBRA coverage when you lost your job, you have 60 days to re-register after receiving a notice from your employer.

The grant takes effect March 1, but employers have until April 17 to notify eligible former employees. The dismissed employees who have already signed for COBRA May have to pay the total premiums in March and April, said Kathryn Bakich, Senior Vice President and Chief Compliance Officer of healthcare practice at Segal Co. They will receive a credit or off in March and April of their overpayments, she said. However, they will not be reimbursed for premiums paid before March.

Here are some other things you should know about COBRA subsidy:

* Employees who have retired or left voluntarily are not eligible for the grant. If your employer decides you are not eligible and you disagree, you can file an appeal with the Department of Labor. The department is currently developing an application for appeals. You can find more information about www.dol.gov / cobra.

* You are not eligible for the subsidy if you have access to other insurance groups, such as a spouse or health insurance plan.

* If you qualify for the subsidy, May your employer allow you to move from a less expensive health insurance option. Normally, when you sign up for COBRA, you are obliged to stay with the plan that you signed with while you work.

For example, some employers offer plans that offer lower premiums in exchange for a great franchise. The transition to such a plan would reduce your premiums even more, says Tom Billet, senior benefits consultant Watson Wyatt. A high-deductible plan in May not provide the level of coverage you had when you were at work, he says, but it will protect you against catastrophic medical expenses.

* Your COBRA subsidy will end once you become eligible for other group coverage, after nine months, or your eligibility for COBRA coverage expires, whichever comes first. COBRA coverage is generally available for 18 months after you quit your job. The grant will not change the time you are eligible for COBRA, says Kelly TRAW, principal at Mercer, a consulting firm in human resources.

Some unemployed workers in May to find that the premiums under a policy of insurance is lower than the cost of COBRA, even with the federal grant, said Wendy Nice Barnes, Vice President of Human Resources for eHealthInsurance.com, a site site that allows consumers to shop for plans. The young, healthy adults can buy individual policies for as little as $ 65 per month, against $ 133 per month with the COBRA subsidy, according to an analysis by eHealthInsurance.com.

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However, if you have a pre-existing health condition such as diabetes, you'll probably find it difficult to obtain an individual policy. With COBRA, you can not be denied coverage because of health problems.

Sign in COBRA will also protect your ability to obtain insurance coverage in the future, Bakich said. Under the federal Health Insurance Portability and Accountability Act, insurers can not deny you coverage after you have exhausted your COBRA eligibility. If you do not adhere to COBRA, you waive this right, "she says. His advice: Sign up for COBRA, then start shopping for a less expensive individual.

"If you leave your COBRA rights expire, they (insurers) are not in warranty coverage," said Bakich. Otherwise, she says, "if you had any health conditions, they could refuse to cover you.

To suggest columns, e-mail: sblock@usatoday.com expensive health coverage

In the past, former employees who enrolled in COBRA had to pay 102% of their health insurance premiums. Average premiums for 2008:

Contribution of workers

Employer contribution

Total

Single $ 721 $ 3,983 $ 4,704

Family $ 3,354 $ 9,325 $ 12,679

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