New COBRA Options Available
Individuals who were recently laid off and need health insurance may be eligible for help paying for COBRA benefits, according to state Sen. Mike Stack.
The recently passed federal stimulus package may provide a 65 percent reduction on COBRA premiums for up to nine months to eligible enrollees. These enrollees would pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider or employer through a tax credit. Additionally, individuals who previously declined COBRA coverage because of the cost may re-enroll to see if they qualify to receive coverage at reduced rates.
“COBRA costs can often add to the stress of individuals who have lost their income and health benefits for themselves and their families,” said Stack, the Democratic chairman of the Senate Banking and Insurance Committee. “Health coverage is still crucial to individuals and families alike, and now there’s a more affordable option, thanks to the stimulus package.”
Employers have until April 18 to send notices to assistance-eligible individuals who lost coverage from Sept. 1, 2008 through Feb. 16, 2009, according to the Pennsylvania Insurance Department.
“Unemployed individuals who think they qualify may contact their former employer to learn more about their options with COBRA,” Stack said. “For those who don’t qualify or are looking for more options, Pennsylvania’s Children’s Health Insurance Program, or CHIP, offers affordable coverage for children in families of all income levels. The state’s adultBASIC program is also an option for uninsured adults who qualify.”
For more information about COBRA, call the U. S. Department of Labor at 215-861-5300 or toll-free at 866-444-3272 or visit the Web site www.dol.gov/cobra.
The recently passed federal stimulus package may provide a 65 percent reduction on COBRA premiums for up to nine months to eligible enrollees. These enrollees would pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider or employer through a tax credit. Additionally, individuals who previously declined COBRA coverage because of the cost may re-enroll to see if they qualify to receive coverage at reduced rates.
“COBRA costs can often add to the stress of individuals who have lost their income and health benefits for themselves and their families,” said Stack, the Democratic chairman of the Senate Banking and Insurance Committee. “Health coverage is still crucial to individuals and families alike, and now there’s a more affordable option, thanks to the stimulus package.”
Employers have until April 18 to send notices to assistance-eligible individuals who lost coverage from Sept. 1, 2008 through Feb. 16, 2009, according to the Pennsylvania Insurance Department.
“Unemployed individuals who think they qualify may contact their former employer to learn more about their options with COBRA,” Stack said. “For those who don’t qualify or are looking for more options, Pennsylvania’s Children’s Health Insurance Program, or CHIP, offers affordable coverage for children in families of all income levels. The state’s adultBASIC program is also an option for uninsured adults who qualify.”
For more information about COBRA, call the U. S. Department of Labor at 215-861-5300 or toll-free at 866-444-3272 or visit the Web site www.dol.gov/cobra.
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