COBRA News

Feb 23, 2009

The COBRA payments really have me worried the most. Since the Stimulus plan changed COBRA I've been even more anxious on how much I'll have to pay and if my husband's former company will be up to date and ready when I need to make my first payments.

Last night I was surfing and looking things up and finally found some useful information as to when this COBRA plan is supposed to go into effect! COBRA Plan 

It says:

COBRA premium subsidy

The Act includes COBRA subsidies for any employees (and their qualifying dependents) who lose their group health plan coverage because of an involuntary termination of employment between September 1, 2008 and December 31, 2009. These individuals will be allowed to pay only 35% of the COBRA premium, with the employer (your company) paying the remaining 65%, which you will then deduct from your federal payroll taxes or, if necessary, obtain in refunds from the government. Curiously, the law does not define what “involuntary termination” means, though we hope for clarification from the Department of Labor or the Internal Revenue Service. (Keep in mind that characterizing a termination as an involuntary termination may have an impact on eligibility for certain benefits, such as unemployment benefits and severance benefits.) The subsidy does not apply to the continuation of health flexible spending accounts under COBRA.

The subsidy applies to periods of COBRA coverage that begin after February 17, 2009. A period of coverage is the monthly (or shorter) time period for which premiums are charged. If the period of coverage under your plan is a calendar month, your company will have to start providing the subsidy beginning March 1.

Ok so it begiuns March 1st. Phew! I will probably call them at the end of the week to get clarified information since they should be ready by then since it's supposed to start up on March 1st.

0 Comments