Timothy Kolman & Associates
Employment
Law News:
Copyright TKA 2008
Timothy Kolman & Associates
Since 1991
IF YOU LOSE YOUR JOB, YOU MAY BE ELIGIBLE FOR A
HEALTH INSURANCE SUBSIDY
As most of you know, the Consolidated Omnibus Budget Reconciliation Act, also known as COBRA provides families with the opportunity to continue their coverage under an employer’s group health insurance plan for 18 to 36 months after a lay off or a quit or a reduction in hours. You will not be eligible however, if you are terminated for willful misconduct. Under the American Recovery and Reinvestment Act of 2009, the government will pay 65% of the cost of continued coverage under COBRA for certain employees and their families. The subsidy is available for some 9 months for any of you who have lost your jobs because of any other reason than gross misconduct.If you want the subsidy, you need to be eligible for COBRA first. In other words, your job needs to have been terminated for reasons that were not your fault. If you quit your job or resign, you will not be eligible. (Although you can still get COBRA).If you have lost your job from September 1, 2008 through December 31, 2009 you should be eligible for the subsidy. Even if you initially decline COBRA because you could not afford it, your employer has to give you a second chance to elect the COBRA coverage by sending you a notice of the new rules. The subsidy should last for up to 9 months but it may end sooner if you become eligible under another group healthcare plan or your COBRA coverage ends.If your employer hasn’t sent you a new COBRA letter, indicating a revised COBRA election within 60 days from March 2009, then there may be a violation of COBRA. You can go on the United States Department of Labor website to learn more.