Around Chicago, health insurance policies can be found with help from brokers such as Price Benefits—but be aware of the government’s deadlines. The eligibility period for reduction on Consolidated Omnibus Budget Reconciliation Act (COBRA) health insurance is coming to an end on February 28 after a two-month extension signed by the president in December. The 2010 Department of Defense Appropriations Act, an amendment of the American Recovery and Reinvestment Act of 2009 (also referred to as the ARRA or Stimulus Bill), increased the maximum amount of time for receiving the subsidy from nine to 15 months. Steve Price, owner of Chicago health insurance agency Price Benefits, recommends individuals be aware that there is currently no indication of any further extensions. This means that any American workers involuntarily terminated after Sunday will not see the government’s assistance with 65 percent of their premium unless Congress takes further action. Fortunately for future qualifiers of COBRA insurance, bills to further extend the subsidiary have been introduced into the Senate and the House of Representatives.
According to the United States Department of Labor, the funding process works by allowing “assistance eligible individuals” (AEIs) to pay only 35 percent of their COBRA premiums while the remaining 65 percent is reimbursed to the coverage provider through a tax credit. This policy applies to individuals involuntarily terminated on or after September 1, 2008 and the payment reduction applies to periods of insurance beginning on or after February 17, 2009. An AEI must also meet certain other requirements, including potential income limits, having a “qualifying event” for continuation coverage under COBRA or a comparable State law, choosing this insurance within 60 days and not being eligible for Medicare or other group health plans. Whether you qualify for group health plans or prefer individual plans, Price Benefits can help you design a policy that fits your specific needs.
The new act also established a transition period for applicable AEIs along with new qualification and notification requirements, but it maintains the refund and credit rules of the original ARRA bill to any AEI whose subsidy expired in November and who has since paid the full COBRA premium. It allows workers who have used up their funding by completing their original nine month eligibility since October to receive six more months of support, and those who did not choose to continue with COBRA insurance once their grant expired to make payments retroactively, receive the subsidy and continue with coverage. Finally, workers involuntarily terminated on or before February 28 qualify for the financial assistance no matter when their eligibility begins. To find out if you are still able to receive the government’s reduction, ask any further questions about the extension or find insurance that best suits you, contact Steve Price at steve@pricebenefits.org. |
