COBRA Subsidy
On February 16, 2009, the American Recovery and Reinvestment Act (ARRA) of 2009 was signed into law. This Act reduced the COBRA premium for COBRA eligible individuals who meet specific requirements. The Department of Defense Appropriations Act of 2010 (“the Act”) became law on December 19, 2009. The Act introduces several important changes to the COBRA premium reduction rules that were originally part of the ARRA. These changes include:
1. COBRA Subsidy Extension: The Act extended the original nine-month COBRA premium reduction period for Assistance Eligible Individuals (as defined in ARRA) for up to a total of 15 months. This period cannot be longer than the maximum COBRA period and is measured from the date the COBRA period began.
2. COBRA Re-enrollment Opportunity: Assistance Eligible Individuals who exhausted their original ARRA nine-month premium reduction period before December 19, 2009 and did not pay COBRA premiums for December may reinstate COBRA coverage effective back to December 1, 2009 at the subsidized rate. They must pay any missed (back) premiums by February 17, 2010. WARNING: IF YOU CANCELLED COBRA COVERAGE BEFORE EXHAUSTING YOUR ARRA PREMIUM REDUCTION PERIOD, YOU ARE NOT PERMITTED TO REINSTATE YOUR COBRA COVERAGE.
3. Extended Enrollment Period: The Act extended the original enrollment period for the subsidy from December 31, 2009 to February 28, 2010.
For more information about the subsidy, go to the Department of Labor's Web site.
We have developed the following rate charts to show the current State Group Insurance subsidized COBRA premium rates*:
To be considered for the subsidy, you must have been involuntarily terminated from employment. If you believe you meet the criteria for the subsidy, you should send your subsidy application to People First within the timeframe specified in the COBRA notice you receive in the mail.
If your application for the COBRA subsidy is denied, you have the right to have the U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services review the denial. If you wish to appeal, please complete the Request for Expedited Review of Denial of Premium Assistance application (msword 554.00 kB) . Address information is on page 2 of the application.
*Rates will increase in May 2010 for June 2010 coverage.
