Gov't Helps With COBRA Payments
I heard part of a story on NPR this morning which had to do with part of the Stimulus Package having a provision whereby the government will pay either 65% or up to 65% (sorry, my mind was drifting) of an unemployed person's COBRA payments. Pass it on.
Gordy 
http://www.dol.gov/ebsa/COBRA.html
The American Recovery and Reinvestment Act of 2009 (ARRA), as amended on March 2, 2010 by the Temporary Extension Act of 2010, provides for premium reductions for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. To qualify, individuals must experience a COBRA qualifying event that is the involuntary termination of a covered employee's employment. The involuntary termination must generally occur during the period that began September 1, 2008 and ends on March 31, 2010. (An involuntary termination of employment that occurs on or after March 2, 2010 but by March 31, 2010 and follows a qualifying event that was a reduction of hours that occurred at any time from September 1, 2008 through March 31, 2010 is also a qualifying event for purposes of ARRA.) The premium reduction applies to periods of health coverage that began on or after February 17, 2009 and lasts for up to 15 months. See Temporary Extension Act of 2010.
Firefly We have several people in our office that have been able to take advantage of it, it's been a godsend to them. I'm not sure what the rules are but it decreased their COBRA payments by a good amount.
Hi Gordy...waving a big hello to you!
Bessie I have been able to take advantage of this personally. There are 3 simple qualifications to determine eligibility though off the top of my head I can't remember them. It is definitely a big help, taking my COBRA from well over $500 to under $200 per month
RedI know you can no be eligible for cobra reduction if you are eligible for coverage with spouse or another insurance carrier.
Mommyof2 Gordy, I hate to point this out but the title of this thread is wrong. It should read "Neighbors Help With COBRA Payments".
Sorry to be a pain, but it's a real pet peeve of mine when people discuss handouts as being given by the government. Being that the government has no money of it's own - only what it takes (under the thread of penalty I might add) from John Q Public - "they" can't help with anything. We should be thanking our neighbors who are still employed for their assistance.
justintime This is a big help if the company you are laid off from is still in business. If the company you were working for goes out of business, COBRA is not available to you because there is no longer a company to sponsor a group plan. In this case, you have to buy individual coverage which is already at a higher rate than the group plan and you do not get any percentage from the government to help pay for it, let alone 65%. While I'm sure it's a welcome relief to those it helps, once again the government gets it wrong. It doesn't take into consideration the very real possibility that people are laid off because the company went "under". This is the same government that wants to run health care and they can't get even get this right?? I can't even imagine. It's time to worry about getting decent jobs created again so people don't have to worry about being on COBRA. Jobs are the answer, not subsidies.
Justintime i do not know much about this topic, correct me if i am wrong but it seems people are paying into this as well and its not a "handout" I think its great they are taking the steps to use this benefit unlike people who do not wish to pay into it and get insurance, and just go to the ER every time there sick running up even more $$ in debt for the state on charity care.
shoebie JIT - I thank everybody I see everyday for paying to keep our servicemen in Iraq and Afganistan. I actly have an normous list of things I thank everybody for, but don't think I have enough time or energy to post it here. Suffice it to say it includes all the government agencies, such as the FCC, FDA, VA, SSA. Need I say more? Would you understand if I did?
Hi Bessie.
Did anyone grow up with the saying, you sound like a broken record? I don't know what made me think of that, LOL.
Guess who just got back today?
Them wild-eyed boys that had been away
Haven't changed, haven't much to say
But man, I still think them cats are crazy
They were asking if you were around
How you was, where you could be found
Told them you were living downtown
Driving all the old men crazy
The Soapbox boys are back in town
The Soapbox boys are back in town
Clyde Potts 
realitycheck If the Cobra & unemployment benefits go away without stimulating the economy then your going to see some real depressing times for this country as a whole. Personally I do wish they would develop a health care program that is affordable to a greater number of citizens but not until we get people back up on their feet working will we have better times in this country. Tent villages is not what we are striving for.
Begin Again Finnigan Bessie, some things haven't been said enough, for if they had then the concept would be fully understood by all. And it's obvious that's not the case. Look around you - repetition of BS is what drives our society. Why would repetition of an actual truism be any worse?
I'd be more inclined to quote a Simple Minds song, but that's just me ;)
shoebie, the partial payment of COBRA insurance was added in the bailout legislation passed in response to the economic turmoil in '08. (I don't recall which legislation at the moment)
Birdie How about we rename it: "Government sees that people do what is right by each other and pool tax funds to help with COBRA Payments".
The fact is that much of John Q. Public does not give a rats ass about his neighbors. When times get tough, he buys a gun, some canned goods and hides in this basement.
Dolly, I didn't comment on the validity of COBRA assistance. The fact is, it's available and should be taken advantage of by anyone who needs it.
I only reminded everyone where the money is coming from for the program. Are you saying I'm wrong?
God forbid you lose a good job you better take the subsidy for the 18 months that COBRA lives for (as long as your company is around). Going from $$ a week to pennies has got to be a shocker. Sure it comes from the common pool of money JIT. I can see a lot of other changes in this world that need to go first before I would be concerned about this transitional program.
Jay Justin, not disagreeing with you in that post one bit. Just stating that without programs like these there would be little or no help for the weary.
But if you were to suggest that this program would be available without government intervention, I would disagree with you, and in a way that wouldn't leave you guessing.
Dolly - There are many charities that offer help for the "weary". I am sure that you have in the past and will continue in the future to support those charities that you feel are effective and make a difference. So why do you look down at your fellow man and say they won't?
Just as an FYI - the 65% that the company is covering for you is considered part of your taxable income. It must be included on your taxes.
Andrew's Mom Andrew's Mom, I don't know where you got that info that the 65% is income and must be included on your taxes, but this is erroneous information. I am a CPA and I prepare tax returns on a daily basis and I attend seminars sponsered by the IRS to keep up on all the tax law revisions. The 65% is paid by the employer and the employer claims that 65% of the premium on his quarterly employment tax return as a credit against his tax liability. No part of that 65% is taxable by the employee in any way, shape or form! As a matter of fact, the 35% that is paid out of pocket is actually deductible as a medical expense if you itemize on your tax return. Just wanted to get the facts right on this one.
Barb Commenting is no longer available.
