Laid-off workers offered health plan (65% of premium paid by the federal economic-stimulus package)

[Omaha Steve]

http://www.deseretnews.com/article/705297818/Laid-off-workers-offered-health-plan.html

Deseret News

Published: Thursday, April 16, 2009 11:21 p.m. MDT

Uncle Sam taketh this month, but he also giveth, if you're quick about it, and if you've been laid off from a small business and you can afford your share of the premium for the medical insurance plan you lost when you lost your job.

Laid-off workers here and across the country who didn't sign up to continue their medical-insurance plan through the federal COBRA plan have a second chance to enroll, plus they can have 65 percent of the premium paid by the federal economic-stimulus package.

The deal has lots of catches, the chief one being that to be considered, a worker must contact their former employer or the medical insurer of the workplace plan by this Saturday. Workers targeted by the subsidy must be able to shoulder 35 percent of the premium, or about what they were paying when they were covered by the plan offered at work. The subsidy is available for as long as nine months or until work and a company plan can be found again.

Amy Turner, a senior employment-law administrator with the U.S. Department of Labor, said Thursday that the intent was to do something to help the estimated 7 million people nationwide who have lost their jobs due to the recession stave off the potential financial catastrophe of an anticipated serious illness.

The plan specifically targets workers of companies with fewer than 20 employees and who were laid off beginning in September and those who will lose their jobs between now and the end of this year.

Utahns have access to the subsidy through Utah's so-called mini-COBRA act. Utah is one of four states that in the past month or so adopted changes to state insurance law to allow laid-off workers who didn't sign up for COBRA to have a second chance to enroll.

FULL 2 page story at link.

[Kber]

1. That article isn't 100% accurate, which is actually good news.

Here's the deal:
if you were involuntary terminated (this includes anyone let go for any reason other that gross misconduct,i.e. for theft or workplace violence) any time after September 1, 2008, you are eligible to receive a 65% subsidy for your COBRA insurance. The subsidy applies to any of your COBRA eligible dependents who lost their coverage because of your loss of employment.

The subsidy is retroactive to either February 18 or March 1, depending on how your plan worked.

If you are already signed up and paid the full premium for March and / or April, you will probably receive a credit. If you drop COBRA prior to using the credit up, you will receive a refund for the remaining amount.

If you dropped COBRA or never signed up, you can sign up now with retroactive coverage to either February 18 or March 1, again depending on your plan.

Employers had to April 18 to mail notices to their former employees who qualify for the subsidy. You have 60 days from the receipt of the notice to sign up. If you were laid off after September 1, 2008 and haven't received a notice, contact your employer on Monday.

Employers are responsible for putting up the remaining 65% of the premium, but they will receive a credit on their quarterly tax returns.

Even if you are already enrolled, you can keep your COBRA for 18 additional months from February 18 or March 1. However, the subsidy is set to expire December 31, 2009.

ALL THIS A POSSIBLE THANKS TO THE STIMILUS PACKAGE PASSED BY CONGRESS AND SIGNED INTO LAW BY PRESIDENT OBAMA ON FEBRUARY 18.