Will You Benefit From COBRA?
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COBRA is not only a deadly venomous snake but also
a program that mandates temporary continuation of your employer-sponsored health insurance coverage under certain "Qualifying Events" in which you would
typically lose health insurance benefits. These events include: voluntary or involuntary separation from employment, a reduction of hours worked, the death of an employee, or a divorce. But like a snake charmer, you need to understand how to handle COBRA or you may end up in an unnecessarily dangerous situation you'd rather not be!
As part of the recent "Stimulus Bill", there are new rules about how
COBRA works.
If you are involuntarily
terminated from a job from 9/1/08 through 12/31/09 you may be eligible for a
65% subsidy of your COBRA continuation health insurance premiums effective
3/1/09. Those who are eligible for other group health coverage, (such as a spouse's plan) or Medicare, are not eligible for the premium
reduction. Other limitations may also apply. There is no premium reduction
for periods of coverage that began prior to February 17, 2009.
COBRA generally does not apply to plans sponsored by employers with less than 20 employees.
Here are some of the new stimulus guidelines:
 You are
eligible for the 65% subsidy if you have a Modified Adjusted Gross Income of ≤
$125,000 for those filing individually and ≤ $250,000 for joint filers.
You
were involuntarily terminated from 9/1/08 through 2/17/09 and did not apply for
COBRA at the time; you now have a second chance to apply for it.
You may be
able to choose a lower cost health insurance plan if one is offered by your
plan sponsor.
The 65%
subsidy ends after 9 months or when you become eligible for other group health
insurance, become Medicare eligible, or fail to pay your COBRA premiums, whichever
comes first.
We have a lot more information about COBRA on our website in
our Toolkit:
Tool #8 - FAQs About COBRA Continuation Health Coverage
Tool #14 - Fact Sheet on COBRA Premium Reduction from the U.S. Department of Labor
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 Take GOODCARE of your health! |
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"Eat Right" is the theme for this year's National Nutrition Month sponsored
by the
American Dietetic Association. Remember eating well is easy and cost
effective. It's one of the best
investments you can make in your health! |
 Ask Dr. Katy
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Q: What if I still need health insurance coverage after the COBRA subsidy ends?
A: There are some things to think about and some steps to take:
Do
not let your COBRA coverage lapse until you find new health insurance plan! It's
easier to get new coverage when you have coverage. You may avoid medical reviews and exclusions
for preexisting conditions. So, cancel COBRA coverage after you get new coverage.
You
don't need to wait until COBRA coverage is ending before looking for a new
policy. There may be health insurance that meets your needs at a lower cost
than COBRA coverage. A good place to start is with your professional and social
associations, many of whom offer health insurance plans. You can also call us @ 1-866-696-6543 and
we can help you shop around.
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| GOODCARE.com on PBS
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The Nightly Business Report has been running an excellent
series: Get your Finances Ready for
Retirement. Dr. Katy was interviewed in two of the four segments about health care
costs. The video postcasts are available to view and download for free at www.pbs.org.
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Dr. Katy is now on Twitter!
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