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Find out more about COBRA insurance and how it can benefit you.
 

COBRA Changes March 1, 2009 – American Recovery and Reinvestment Act

This is part of the economic–stimulus package.
This will be delayed since employers are waiting for instructions from the Labor Department
and the Internal Revenue Service on how to put the program into place.
  • Applies to employees involuntarily terminated between 9/1/2008 and 12/31/2009 and eligible for COBRA or continuation coverage.
  • Provides up to a 9 month subsidy equal to 65% of the COBRA premium.
  • The subsidy ends at 9 months, or prior to 9 months if the COBRA eligibility period expires.
  • The subsidy ends if the individual becomes eligible for group coverage or Medicare.
  • Failure to notify former employer of other coverage results in a 110% penalty.
  • Applies to state continuation programs that are comparable to COBRA, for groups under 20 employees if available.
  • Eligible for subsidy starting March 1, if already on COBRA prior to March 1.
  • Can elect COBRA starting March 1, if previously eligible for COBRA and did not elect it, with the length of COBRA coverage measured from termination of employment.
  • Subsidy reduced if adjusted gross income is over $125,000 individual or $250,000 joint filer.
  • No subsidy available if adjusted gross income is over $145,000 individual or $290,000 joint filer
  • The health plan or employer will only collect the employee 35% portion and obtain reimbursement from the federal government for the balance of the premium.
  • Employers required to notify employees of eligibility for the subsidy.

Online Resources from the U.S. Department of Labor:

Oregon State Continuation included in Stimulus Package:
Note: Must continue to be an Oregon resident.

You may save more money with a short term medical plan.

For more information see Plans in your state

COBRA (Consolidated Omnibus Budget Reconciliation Act) provides rights that may enable you to continue your health insurance coverage for a period of time after you leave work. Continuation is a similar program available in some states for smaller employers. The rules are complicated, but the concept is easy. If you have had health insurance through your employer for a specific length of time, and then lose this coverage, you may be guaranteed to continue the health insurance for a certain amount of time. Your spouse and child or children may also have rights to continue the insurance.

The exception to this right is if you are terminated from employment because of your gross misconduct or the group plan itself ceases to exist. The later could occur if the company goes out of business or drops their insurance coverage.

 Cobra

Click here for a printable PDF of the Cobra Overview page

The number of employees your employer has determines whether you can keep your insurance through COBRA. Generally, if you work for an employer employing 20 or more employees, COBRA benefits may be available to you. If you are eligible, you can usually keep this coverage for up to 18 months. Since each state has its own guidelines, you will need to check with your employer for more details. Your employer is responsible for notifying you of your COBRA rights at the time you are terminated or lose your insurance coverage.

The benefits offered through COBRA are the same as your group health insurance benefits while employed. You will usually be required to pay the full premium for your coverage and an administration fee of two percent. The cost of continuing your coverage may be prohibitive. You need to find out in advance what the costs are if you are planning to use this option. You only have a limited time to elect this option after you leave work.

You generally have 60 days to elect COBRA coverage.

For more information see the Department of Labor

Please call 1-888-957-5001 for Cobra information or literature.
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