Bill would extend COBRA subsidy
November 12, 2009 by Christian SchappelPosted in: COBRA, Health care, In this week's e-newsletter - benefits, Latest News & Views, Pay and benefits
Looks like the COBRA subsidy may continue to be a thorn in the side of HR and benefits pros.
Legislation introduced in the House of Representatives by Rep. Joe Sestak (D-PA) would extend the subsidy and make those laid off from Jan. 1, 2010 through June 30, 2010 eligible.
Under the proposed bill, the subsidy would be provided for up to 15 months.
Currently, the subsidy is available for up to nine months for people who lost their jobs after Sept. 1, 2008 — and it won’t be available to employees laid off after Dec. 31, 2009.
Without an extension, people who began collecting the subsidy March 1 — when it first became available — will lose it at the end of November.
Tags: benefits, COBRA, House of Representatives, HR, Joe Sestack, subsidy
November 18th, 2009 at 9:38 am
anytime unemployment benefits are extended unemployment rates go up and stay up. past time that the business-community recognize this downward spiral and implement planning processes that eliminate this condition. the future taxes will strangle us all.
November 19th, 2009 at 1:54 pm
The verbiage above is inarticulately worded and has the potential to be somewhat misleading. No former employees “collected” a subsidy–they received a break in the premium price. Using the word “lose” implies that their COBRA coverage will be dropped. Not so. COBRA rules for eligible time (18 or 29 months for employees, 36 for dependents) still apply.
November 19th, 2009 at 2:12 pm
I don’t mind unemployment for those who have lost their jobs because the position was eliminated or they were laid off. I’m tired of employees getting unemployment benefits because they WOULDN’T get to work on time and got fired and then we are on the hook for 65% of their health coverage, which is more than current employees get. It has become an entitlement program that has gotten out of control.
December 4th, 2009 at 7:05 am
But for those of us who have worked hard all of our lives this subsidy is necessary. Without the subsity our premium would be $770 a month. The same or more than a house payment. Why should healthcare take so much of what unemployment I receive. We are also a family that is looking hard for a job and don’t take any of this for granted or are trying to get all we can out of the system.
December 10th, 2009 at 2:11 pm
Employee’s that are termed for not doing they jobs are now getting a bonus!! If this was for down sizing or for jobs that are eliminated I can understand. But ,employee’s that go out on medical, then to Long Term Disability are costing self-insuranced groups a lot of money, because they are our high hitter are now getting a big break and killing the Trust. Yes, some help I understand but to extend this out for 15 months, what is next?
December 10th, 2009 at 6:12 pm
Christian Schappel’s statement about “…and it [COBRA Subsidy] won’t be available to employees laid off after Dec. 31, 2009…” needs to be clarified. If you are laid off December 1, 2009, typically, insurance will run through to the end of the month in which you terminate. You would then be eligible for COBRA on January 1, 2010 and therefore NOT eligible for the COBRA Subsidy. The subsidy plan clearly states “you must be eligible for COBRA BY December 31, 2009 to qualify”.
December 14th, 2009 at 2:05 am
I cannot speak for the people that want to take advantage of the way this is working out, but I worked for over 30 years and was never laid off until now because my industry dried up with the bad economy and the banks putting us in this mess. I want to go back to work and can’t wait. Right now, I need help with covering my cobra costs. Not looking for a hand out and frankly would be willing to pay it back after going back to work. Just some help to cover the costs until I go back. Lets see, an extra six months at 600 dollars a month is $3600.00 I would receive to help with coverage. Hearing about those AIG guys getting billions for a bailout and then taking bonus money; after 30 years of paying my taxes all that time to contribute to bailing them out, do I think I deserve it? Yes I do.
January 20th, 2010 at 10:32 am
I taught for five years in a Catholic Dioscese, which contracts all teachers on a yearly basis, with an ‘at will’ clause. Osteo arthritis forced me to requst short term disability to resolve my health issues. Out of sight/out of mind – my contract was not renewed due to down sizing because of reduced enrollment because Catholic School charge tuition – no jobs = no tuition money. I have paid 100% of $610.00/month; my COBRA priviliges are set to expire 4-1-10. To say I sorely need this extension is an understatement…. with my current health history I fear that I could not afford or be accepted for a private health insurace policy. Just pass the extension, PLEASE!!