Change in COBRA health plans for laid off workers a plus

[ktfabian]

Just wanted to drop a line about a change in COBRA laws here in the US have benefitted from the latest stimulus package.  COBRA laws - don't remember exactly what the letters stand for but it has to do with workers who lose their jobs through no fault of their own being allowed to continue their health care coverage as long as they can pay the full price.

Anyway, my husband just lost his job last month, and we found out through my brother-in-law, who is head of accounting and human resources at his company, that you can now "buy" the coverage for just 35% of the total cost, retroactive to lay-offs in September of 2008, for 9 months.  It's a HUGE savings.  Instead of more than $700, we're continuing an excellent insurance plan for $230.  I couldn't get my Medicare Part B, D and supplement (to cover all the co-pays you're left with with Medicare) for that amount.

My husband's company did NOT tell us of this option, we had to push them to cooperate.  The company is not on the hook for the difference, they are reimbursed through a decrease in certain taxes they pay. 

I don't have a link for this right now, but if you or your partner has lost their job, be sure to ask the employer about continuing benefits under the ARRA COBRA premium reduction.

Just wanted to share, Tracy

[eyeamdry]

Good point, Tracy.  My daughter lost her job and this was not pointed out in any way to help out.  Her cobra is $450 as a single person.  She can't afford the cobra, so I sent in 2 months payment for $900.  They told her she would be called back and was not eligible for the 35/65% because of that.  She called the Dept of Labor and then it was pointed out that because she would be called back the percent did not apply.  Well, a few days later, she got a letter saying her job was eliminated.  So, now, just like that she is eligible for the 35/65.  How confusing.  They would not refund her money, but took the one month at $450 and then are using the rest of the $900 for her 35%.

The company gets a tax write-off for their 65%.  I don't know why it was made with so many hoops to jump through.  I guess if you are completely out of a job, you'll get this for 9 months.  If you're just laid off for 6 months or so, you don't qualify.  My question is--how do they know so far ahead of time how the economy will be and just who they'll call back to work?  Lucy

[Pisces24]

People just REALLY don't know what their health insurance really costs because the companies pick up most of the tab.  I heard about the COBRA. Glad they have it as it is sure needed!  .
Some years back, long before any hint of SJS, I had COBRA and it cost me $400 month and I was very healthy then too. How the government even figures a person could afford COBRA after they lose their job is waaay beyond me. I couldn't pay $400 for insurance while working!!!

Yeah the companies don't want to tell you much when you get laid off.  They will fight like heck to keep you from getting things too.  One time I got laid off and the company was fighting everyone's unemployment. Geesh I only used the unemployment for 2 weeks until I could get with a temp agency. I worked temp until I found another job. 

I guess I just want to say that this "ole gal" learned you have to be proactive and stick up for yourself w/employers. The "loyalty factor" just isn't there anymore.

[ErinG]

Here's a link to the press release related to the change in COBRA:

http://www.dol.gov/ebsa/newsroom/2009/09-292-NAT.html