Obama Stimulus Plan: COBRA provisions for unemployed workers

Last updated on: February 11, 2009 at 12:40 am by Desh Kapoor

Obama Stimulus Plan: COBRA provisions for unemployed workers 2009-02-11T00:40:17-06:00 Desh Kapoor

LOGO Patheos Explore the world's faith through different perspectives on religion and spirituality! Patheos has the views of the prevalent religions and spiritualities of the world.

UPDATE: The COBRA Subsidy Plan (under the American Recovery and Reinvestment Act of 2009)has been implemented and it retroactive to Sept 2008. You need to contact your HR/Benefits department you are now to pay only 35% of the premium for 9 months and the employer has to get the rebate from the IRS. So, please contact your HR Department as they should be able to handle this for you. If you have any questions or thoughts please do share with us all. Check out the details and Frequently Asked Questions on how to avail the COBRA Subsidy plan at this link.

A small but very significant measure – at least for normal employees – in the stimulus bill from Barack Obama is raising heckles for the companies across the US. This has to do with the COBRA provision – the medical insurance available to the employees who have been laid off.

The provision make companies responsible for extending health insurance to former employees age 55 and older or who worked for the company for at least 10 years and this extension of benefits would be permanent!

The other provisions are:

— If you were or are laid off between September 2008 and December 31, 2009, the stimulus bill provisions on COBRA subsidies would apply to you.

— The stimulus program would subsidize your COBRA payment (the House version would pay 65% of it, the Senate version would pay 50%) by giving the organization to which you pay your COBRA bill (typically your former employer) a tax credit. You would first have to pay your share of the monthly payment, then the stimulus package would kick in its subsidy payment (which is really a credit).

— If you lost your job within the designated period and did NOT elect to continue your health insurance under COBRA, your employer must offer you the opportunity to sign up for extension of COBRA coverage as soon as the bill becomes law. For those who maintained their insurance under COBRA, the federal subsidies are not retroactive — meaning, you won’t get any reimbursements for the cost of COBRA payments you’ve already made. Whether you sign on once the bill becomes law, or have stayed insured under COBRA continuously since you lost your job, the subsidy begins when the bill becomes law.

— Eligibility for the subsidy is a maximum of 12 months, and you lose eligibility for it once you become eligible for coverage under another group health plan — other than health flexible spending accounts. (COBRA benefits must be provided for 18 months by companies who lay off workers, and the bill paid by the laid-off worker — pre-subsidy — is the equivalent of 100% of the cost of coverage, plus 2%.)

— If you lose your job between the time the bill becomes law and 2010, and you haven’t exhausted your 12-months of subsidy coverage yet, you’ll be eligible for the subsidy.

The companies are campaigning hard to remove that measure from the bill before it gets Obama’s autograph. Wonder who will win – common employee or the rich dudes in the corner offices?

Reference Links:

1. COBRA provision stimulus
2. Job loss: Stimulus package includes health insurance subsidy
3. Provision details courtesy: Sibson . LA Times blogs)

Previous Post

February 11, 2009

Drama of the Pakistani response to Mumbai Attacks

Next Post

February 11, 2009 Multiple Inboxes now available from Gmail

Browse Our Archives

Select a Category Aarti Achievement and Leadership AfPak Africa Annual and Year-end Asia Audio Australia Behavioural Sciences Bhagwad Gita Bhagwad Gita Blogging Blogs Business Business Intelligence Business Strategy Cannes Careers Chanakya China Conservation Corruption Creative Daily Links Desh Poems Development & Welfare Devotional Audio Devotional Songs Drama Earth Economics Education Entertainment Environment Europe Everyday Quotes Featured Articles Featured Songs Finance Flickr Pictures Food Geo-Political Global Warming Globalization Health & Medicine Hinduism Historic History Humour India Indian Culture Indian music Indian Weddings Israel Issues Legal Link Love Minorities Misc Motivation and Personal Development Movie Lists Movie Reviews Movies Mumbai terror attacks Natural Disasters Nature News Outsourcing Pakistan Parenting Personal Philosophy Poetry Politics Poverty Quotes Recipe Regular Blog Post Relationships Religion Religious/Spiritual Audio Sciences Showcase Slideshow South Asia Special Stories Spiritual Quotes Spirituality Sports Stories Strategy Technology Technology Terrorism Travel Uncategorized US Video Women Women_s Rights Worship Yoga

Select a Month December 2015 November 2015 October 2015 September 2015 August 2015 June 2015 April 2015 March 2015 February 2015 September 2014 August 2014 January 2014 November 2013 October 2013 September 2013 August 2013 July 2013 June 2013 April 2013 March 2013 February 2013 January 2013 December 2012 November 2012 October 2012 September 2012 August 2012 July 2012 June 2012 May 2012 April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005

TAKE THE

Religious Wisdom Quiz

What did God create on the first day?

Select your answer to see how you score.

Land Animals Plants Light