Due to the recent passing of the Federal American Recovery & Reinvestment Act (ARRA), several changes have been made to COBRA Benefits.
An “assistance eligible individual” will only be required to pay 35% of his or her COBRA premium. The remaining 65% of the COBRA premium will be reimbursed by means of a payroll tax credit to the employer (in the case of a self-funded plan), the plan (in the case of a multiemployer plan), or the insurer (in the case of an insured plan).
The subsidy applies if the individual is eligible for COBRA benefit between September 1, 2008 and December 31, 2009 due to a covered employee’s involuntary termination of employment. The subsidy applies to spouses and dependents that are eligible for COBRA coverage as well.
Income guidelines apply.
The following websites have updated information about this:
US Department of Labor – www.dol.gov
White House – www.whitehouse.gov
NY State Department of Insurance – www.ins.state.ny.us
If you don’t qualify the most affordable option would be Healthy NY.
It is possible to cut expenditures in this severe economy. I’m happy to help you to take a decision regarding your health insurance choices.
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