How to cope with COBRA subsidy uncertainty
Posted on 12 December 2009
Permanent URL of this article: http://retirementrevised.com/money/how-to-cope-with-cobra-subsidy-uncertainty
This morning’s New York Times offers good advice to COBRA health insurance beneficiaries waiting to hear whether Congress will extend the current subsidy on premiums. The nine-month subsidy was created under last year’s economic stimulus bill, and covers 65 percent of premiums for workers laid off between Sept. 1, 2008 and Dec. 31, 2009.
Although an extension of the subsidy is widely predicted, it started running out this month for some beneficiaries, who now face difficult choices as their monthly premiums soar. The Times article offers sound advice on coping with a COBRA subsidy expiration, including:
–Avoid a lapse in coverage if at all possible to avoid future denial of coverage on the basis of pre-existing condition.
Resources: If you have questions about your own situation, check our page of COBRA resources. The U.S. Department of Labor also maintains a useful page, and a free hotline to answer your questions at 866.444.3272.
–Stay in touch with your former employer’s COBRA administrator.
–What to do if you’re newly laid-off.
Read the full article here.
December 12th, 2009 at 5:46 pm
Those who lost their jobs prior to the September 1, 2008 eligibility cut-off date never received any assistance with their COBRA premiums. Many if not most of those same people are not even eligible for COBRA now because their 18 months of coverage has expired. Even those who were lucky enough to receive the subsidy in the first place are starting to loose their coverage and are joining the estimated 50 million uninsured.
According to a Harvard study, uninsured adults are 80% more likely to die from a traumatic injury than those who have insurance. Currently their are three bills working their way through congress that may offer some relief. For more information on these bills and other options to COBRA, please see our website by clicking on my name.