The COBRA subsidy has now been extended, helping millions of unemployed.

[pnwmom]

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/23/AR2009122303100.html

SNIP

The COBRA subsidy program extension included in the 2010 Department of Defense Appropriations Act will do the following:

-- Expand the amount of time people can get the subsidy from nine months to 15 months.

-- Extend the eligibility period for the COBRA premium reduction an additional two months. Before the extension, you had to have been involuntarily separated from your job between Sept. 1, 2008, and Dec. 31, 2009, to qualify for the reduced COBRA payment. That period of eligibility has now been stretched out to Feb. 28, 2010.

-- Give credit against future payments to people who paid the full premium in December. Individuals should contact their plan administrator or employer sponsoring the plan to discuss getting a credit, said Phyllis C. Borzi, assistant secretary of labor. The legislation assures that people who were receiving assistance but whose eligibility has expired will be reimbursed, and they will have the option for re-enrollment, said Sen. Sherrod Brown (D-Ohio), one of the legislators who pushed for the subsidy extension. This particular provision is a welcome relief for Ricky Crawford of Huntsville, Ala. He and his wife had to make a full premium payment of $1,013 in December. With the subsidy they were paying $350. "My wife has some health issues, which, without insurance, we would certainly struggle financially," Crawford told me.

-- Require employers to send out notices to laid-off workers outlining the most recent changes in the COBRA subsidy. For example, individuals who had lost the subsidy will now have additional time to pay the reduced premium to keep their coverage.

After the subsidy was first passed, COBRA enrollment doubled, according to an analysis by Hewitt Associates. With the subsidy, the cost of maintaining the average policy is $398 per month for a family and $144 for an individual, according to the Kaiser Family Foundation. Without the subsidy, that cost jumps to $1,137 per month for family coverage and $410 per month for individual coverage. Unfortunately, if your company closed or went bankrupt and there no longer is a group health plan, the COBRA subsidy is not available.

SNIP

[Horse with no Name]

1. Two months.

Remind me again how LONG the rich have had their tax cuts? Yet, we can't muster more than a few months of relief for separated employees? Too many in Congress are too far out of touch with the working man. They need to go.

[Hannah Bell]

2. +100. 10 years, 1 trillion dollars to the top 1%. but we're supposed to cheer for a

two-month subsidy which helps a handful of people--see, they *really* want to help the little people, it's just so gosh-darned *complicated*!


no, no, it's *not*, it's very simple. helping the little people = less for the rulers.

[pnwmom]

7. Trying reading the actual post. It's now a 15 month subsidy, not a two-month.

It started out as 9 month and has been extended for an additional 6 months.

Also, the time for qualifying for these benefits, which was began in 2008 and was scheduled to end this month, has been extended for two months.

[Hannah Bell]

15. so it's four months longer than i said. big fucking deal. ten years & 1 trillion-plus to the top 1%

23 trillions in 0-interest loans to the banksters.

[pnwmom]

17. The people I know on COBRA are relieved. Six months buys them some time

to find another job. And if HCR is passed, that will probably allow them to keep COBRA indefinitely.

[Hannah Bell]

19. yes, if i got an eclair when i hadn't eaten for a week i'd be pleased too.

however, i'd be less pleased if a handful of people were hoarding the food & asking me to thank them obsequiously for the stupid eclair.

"oh, how marvelous are we, we give you this nice eclair!" (snrfft, sllurp, gurgle, scarfscarf, snort)

[pnwmom]

30. I had to pay at non-subsidized COBRA prices for a year, and I would have been

very happy if I had had this subsidy at that time, so I only had to pay 35% instead of 100%. And I'm glad for the millions who will benefit from it.

[Hannah Bell]

36. like the people happy for walmart's low, low prices.

[pnwmom]

41. I had excellent insurance at the time. The only problem was the cost. n/t

[tblue]

3. That was my reaction, too. Just put them on effing Medicaid.

Repeal those stupid Bush tax cuts. It's really not rocket science.

[pnwmom]

11. Many people on COBRA have spouses with incomes and aren't close to

being eligible for Medicaid.

[pnwmom]

4. You are confusing two issues. The number of months of benefits has been increased by 6 months,

to a total of 15 months. And the date of eligibility as been extended from the end of December 2009 till the end of February, 2010.

Congress could, of course, decide to extend either of these dates in the future.

[Horse with no Name]

5. At the expense of those who are WORRIED SICK about what they will do next??

Relief isn't just financial--it needs to be mental relief as well.
There is no reprieve from worry when you are worried about at what point you won't be able to afford your healthcare insurance anymore. Two months isn't jack shit. It isn't long enough to worry about what you are going to do next.
There is already a limit on how long you can even have COBRA. Why not extend the relief throughout the entire contract?
Nah--that would make too much sense. Let's just drag these people through hell worrying about losing their insurance.
That way--when they decide to give them another "stay", they will be oh so grateful.
Fuck that shit. And fuck the apologists for that kind of psychological warfare.

On edit: You changed your response. I'm not going to edit mine, however.

[pnwmom]

8. It ISN'T 2 months. Why is this so hard for you to understand? It's a total of 15.

Which was perfectly clear in the OP.

"Expand the amount of time people can get the subsidy from nine months to 15 months."

[Horse with no Name]

10. It is a TWO month extension

Not hard to understand, but then again I am not attempting to pretzel-fy one of the small scraps the proles are being handed into a gracious gesture by the overlords.

[pnwmom]

12. WRONG. Subsidy benefits have been extended an additional 6 months, to a total of 15.

The two month change applies to the period of eligibility for benefits, which was set to expire at the end of December. Now, people who lose their jobs in the next 2 months will also be eligible for a 15 month subsidy.

[MiniMe]

37. It will last for 6 additional months, there are 2 additional months to get laid off

What it says to me is "better hope you get laid off before March, or you won't be eligible for the COBRA subsidy"

[pnwmom]

44. Nothing bars another extension. I agree -- it should be permanent. n/t

[Raineyb]

6. That's a load of crap!

My COBRA costs nearly 600 bucks a month. You think I can pay that AND rent on unemployment?

I don't know where they pulled those numbers from but it's bullshit.

[pnwmom]

9. Since the COBRA payment is based on how much your employer has been

paying, could it be that your plan was more expensive than average?

[Raineyb]

13. No. I don't think that's the case at all.

I think the Kaiser foundation's numbers are suspect. Their numbers are simply too low to the point of being unreasonable.

[pnwmom]

14. I know someone on COBRA and their payment is in line with what's in the article.

I'm sorry yours is so high.

[Lisa0825]

16. I was on COBRA after being laid off in June, and the premium was about $150 with the subsidy.

This was for BCBS, and the regular premium was something like $385 or so.

[pnwmom]

18. So your experience was in line with the numbers in the OP. Thanks for speaking up.

I'm happy for the millions who must be breathing a sigh of relief now.

[Raineyb]

22. Bully for them. It doesn't do shit for me. n/t

[Hannah Bell]

20. in 2000 when i changed jobs my cobra was over $400/mo as a single.

[Lisa0825]

21. That was without the subsidy.... This was the first time I was ever

"eligible" for COBRA that I could actually afford it.

[Hannah Bell]

23. yes, without the subsidy yours was $385, you said. Mine was over $400.

The point is, $385 is not necessarily representative.

[Lisa0825]

24. No, my regular premium was about $385. COBRA is the premium plus a percentage for admin costs....

so my COBRA premium without the subsidy was over $400. But that is picking nits anyway. 385.... 400.... both are too expensive for the average unemployed person.

[Hannah Bell]

26. ok, i see what you mean. closer to $800 if you had to pay the employers' part too.

[pnwmom]

29. Over $400 does not equal $800. Her "over $400" amount included the employer's

portion. Read her posts again.

[Hannah Bell]

33. I understand quite well. I don't need your help with reading, I think it's you who needs help.

"ok, i see what you mean. closer to $800 if you had to pay the employers' part too."

[Lisa0825]

57. NO, as an individual employee, my employer paid my premium, which was close to $400.

I did not pay a dime while employed, so the total premium was something like $385, but I could be off by $10 bucks or so. I just remember it was slightly under $400.... TOTAL..... that is what the employer paid for my PPO policy through BCBS, and I paid nothing.

This is kind of a ridiculous argument.

:eyes:

[pnwmom]

25. And with the subsidy, you'd be paying a lot less -- about $150. n/t

[Hannah Bell]

27. i'm not talking about the subsidy. i don't need or want charity that's just a prop for private

profits.

[pnwmom]

28. That's no more charity than Medicare would be. Ridiculous. n/t

[Hannah Bell]

32. Then why is it labeled "subsidy"?

[pnwmom]

42. Because the government will be paying the employer's portion. So the employer

is being subsidized.

[Hannah Bell]

49. nice try, but bull.

[Blue Diadem]

51. The employer gets it back in the form of a tax credit.

Snip from the WaPo article:

Those who take advantage of the program pay 35 percent of the COBRA premium, and employers pick up the remaining 65 percent, which is then reimbursed by the government through a payroll tax credit.

[Hannah Bell]

52. Qui bono? The employer is not being subsidized, the employee is.

The employer gets no subsidy, it's a pass-through.

Only 10% of Americans eligible for COBRA insurance in 2006 used it, many because they were unable to afford to pay the full premium after their job loss.

While some employers may *voluntarily* help subsidize or fully cover the cost of COBRA insurance as part of a termination or exit package,

*it is more common for the ex-employee to cover the entire cost.*

The American Recovery and Reinvestment Act of 2009 as signed by Barack Obama includes a *65% subsidy to employees* for COBRA-enabled insurance for up to 9 months <6> after an involuntary termination. An employee is eligible for this subsidy if

the termination of employment was involuntary,
the terminated employee has no other group sponsored health insurance option, and
the terminated employee is otherwise eligible to enroll in COBRA.
If the employee has an adjusted gross income in 2009 over $125,000 if filing as single ($250,000 if filing jointly), then the subsidy will be recaptured in a phased manner from the employee through the tax system.

http://en.wikipedia.org/wiki/Consolidated_Omnibus_Budget_Reconciliation_Act_of_1985



Employers weren't obliged to pay before; the employee had to pick up both parts; that's why most didn't use it.

Now the gov't picks up part of the cost for 15 months, subsidizing *employees*.

[Blue Diadem]

53. The employer is being subsidized for his cost in subsidizing the former employee.

and yes, it directly helps the insurance industry. Why does that matter so much to you?

I really don't get the point of your arguing over this. The subsidy is a good thing. We've been through 2 plant closings so this isn't our first time with Cobra. We currently pay the reduced amount and wouldn't be able to carry it if that subsidy hadn't been given. It has saved us from bankruptcy since I've had two surgeries in the last 4 months. I'm not alone in that, I know of 3 other people who are on cobra who have had to deal with surgery or expensive medical tests.

No one ever said the employers were obligated to pay before and I'm very well aware of the full cost.

From the IRS website:

COBRA: Questions and Answers for Employers


Under the American Recovery and Reinvestment Act of 2009, certain individuals who are eligible for COBRA continuation health coverage, or similar coverage under state law, may receive a subsidy for 65 percent of the premium. These individuals are required to pay only 35 percent of the premium. The employer may recover the subsidy provided to assistance-eligible individuals by taking the subsidy amount as a credit on its quarterly employment tax return. The employer may provide the subsidy — and take the credit on its employment tax return — only after it has received the 35 percent premium payment from the individual.

http://www.irs.gov/newsroom/article/0,,id=204708,00.html

[Hannah Bell]

54. the employer has no cost, & doesn't normally pay following employee termination.

the gov't is subsidizing employees out of taxpayer money.

spin as you like.

[Blue Diadem]

56. As long as the employer files properly to get credit they will have no cost.

Before the subsidy, of course the employer normally didn't pay any portion of Cobra. Who said they did?

All I'm trying to explain is how the subsidy works. The IRS verifies the OP's news article info. It is how we understood it in April when we went on Cobra.

I really can't understand people on a progressive board being upset that a subsidy extension was passed so more unemployed could keep their health insurance. Sure we'd like a better health care bill, sure we'd like a longer subsidy, but at the moment the subsidy and its extension is a relief to many people.

[pnwmom]

62. You're the one spinning. Public option subsidies are fine with you,

but COBRA subsidies are unacceptable charity.

Right.

:sarcasm:

[pnwmom]

61. So why is this charity and yet a pubic option, with subsidies wouldn't be?

You're not making sense.

[pnwmom]

60. What's bull is to call this charity. By that definition, any social program of

the government's would be charity.

Including Medicare.

[MiniMe]

38. You had to apply for the subsidy

I got laid off last March, about the time the subsidy went into effect. The plan provider was required to inform you of all this. My premium was due to go up for January, now I have to call and see if there is anything else I need to do to keep it going.

My guess is that you have a lot of premium money coming back to you, they would apply any overpayments you have made to future premium amounts. I don't know that for sure, but I agree, that sounds premium amount sounds like the full amount. You should call your plan administrator and see what is up.

[Raineyb]

50. I had been paying the amount I was paying when I was working but that ran out

and I just got a bill for nearly 1500 dollars to make up the difference. And the website has NOTHING to help you apply for the subsidy and needless to say, the phone number has been absolutely bloody useless. I can't afford to be without insurance otherwise I'll never get insurance again. But I can't pay 600 bucks a month either.

[MiniMe]

55. When did you become unemployed?

They have a certain amount of time to send you the paperwork, I don't remember how much time. Usually what happens is that insurance bills a month ahead. The subsidy is on the full amount of the health insurance, most times the employer has been picking up some of that insurance amount. When you become unemployed, you have to pick up the entire premium, but you get the group rates that the employer was paying due to COBRA which is usually cheaper than you can get on your own. You have 60 days to opt in to COBRA. When I was laid off, it was around the time the bill passed. When I called up to ask about it, I was told that they were finalizing the mailing about it, and they had so much time to mail it out, and of course they mailed it on the last day. Then I had to apply for it, and pay the full premium in the meantime. Then I didn't have to pay anything for the next month or two because I had overpaid the premiums while I was waiting for the paperwork.

[Raineyb]

58. It's been over a year. The first year was covered by the separation agreement.

The cobra at full cost is just kicking in now. I'm not sure how much good this will do me anyway as COBRA is only good for a certain amount of time and over 12 months have passed. The school system offers something for about half the cost but I need to be able to see my doctor quarterly to make sure my pressure is under control. The plan offered by the school won't cover that anyway.

[MiniMe]

59. OK, the subsidy was for anybody who was laid off between

September 1, 2008 and December 31, 2009 originally. They just extended it through February 28, 2010. That us for when you were laid off. The original amount of time was for 9 months, and they recently extended it so it will last for 15 months. Are you employed by somebody else now who offers health insurance? If so, you wouldn't be eligible. I think the total amount of time you are eligible for COBRA is 18 months, not positive about that. But if you were laid off during that period, you should be eligible for the reduced amount. Good luck, I think you need to get in touch with your COBRA administrator.

[Blue Diadem]

31. That's a big relief for us. The first subsidy gave us the

ability to continue our coverage that we otherwise would not have been able to afford. During that 9 month subsidy, it was discovered that I had a precancerous condition so I am now 8 weeks post op. DH has heart problems and now with my own situation, having been back to the ER once a few weeks ago, we never know when we'll need that insurance.

We were going to have to drop Cobra at the end of this month and believe me it was a very big worry.

[pnwmom]

43. I'm so happy for you, Blue Diadem, and all the others in similar situations.

Hopefully the health bill will be passed soon and the provisions for extending COBRA even further, and banning pre-existing conditions, will help you, too.

[JCMach1]

34. I never could afford COBRA

If the HCR bill addresses that at least it is something positive.

[pnwmom]

45. Maybe you could have if you only had to pay 35% instead of 100%, as

the subsidies now provide for.

[sandyj999]

35. This Is Good News For Us

My husband has COBRA coverage at the reduced rate and if it weren't for the reduced rate, he would have no insurance. It is a struggle now but would be impossible if not for the reduced rate.

[pnwmom]

46. I hope things work out soon for your husband on the job front but in the meantime,

I'm glad for this.

[newspeak]

39. when hubby was laid off over two years ago

extending COBRA at that time was 800 dollars. Well, when you're laid off, you just can't afford 800 dollars along with your other financial commitments.

[pnwmom]

47. Right. And now it would be 35% of that, which is a lot better. n/t

[SoCalDem]

40. It will help our son in Seattle for sure.. he's been unemployed since March

He's very lucky that he's in a "protected class" of workers and gets very generous unemployment, but if he does not get called back soon, he'll be in a world of hurt.. at least the COBRA extension helps him a little. He already parted with his beloved Audi...broke his heart:(
He could probably get a bs job somewhere, but he'd make less than what he gets for unemployment, so he's almost forced into waiting..

(he's a steel mill crane operator)

[pnwmom]

48. Good luck to him! n/t