How to Qualify for 100% COBRA Subsidized Bonuses
As part of the expanded COBRA program, President Biden’s COVID Relief Bill includes a temporary health care subsidy that will cover 100% of your premiums if you get laid off or cut your hours of work during the pandemic. Coverage is valid from April 1 to September 30, 2021, and is also available to people already participating in the program. Here’s how you can qualify.
What is COBRA?
COBRA, or the Consolidated Omnibus Budget Reconciliation Act, allows you to remain in your company’s health insurance plan for 18 months, provided the company has 20 or more employees (this period can be extended for another 18 months depending on specific eligibility requirements) … events ). You qualify if you were fired, shortened your hours of work, or even fired, unless the firing was the result of a gross misconduct (which is vaguely defined – some employers will ignore this and offer COBRA coverage to avoid trial.).
Sounds good, right? However, there is one catch. While you can keep your employer’s coverage under COBRA, you still have to pay your monthly premiums yourself. Since employers often cover about 80% of your premiums , this is a high price – an average of $ 7,470 for individuals and $ 21,342 for family insurance per year, according to the Kaiser Family Foundation .
COBRA also does not cover other employer policies such as life or disability insurance, which will also increase your costs. In the absence of any subsidy, other options such as Medicaid or Obamacare may be preferable.
Who is Eligible for the Extended COBRA Subsidy?
According to CNBC , the 100% premium subsidy applies to anyone already eligible for COBRA. It is also available to employees who did not choose COBRA coverage during their initial electoral period, as well as those who initially chose COBRA but allowed their coverage to cease. However, those who are eligible for other group health insurance or Medicare are not eligible for the subsidy.
This means that virtually anyone who lost their job when the pandemic started would be eligible as their 18-month COBRA period includes the period April 1 to September 30, 2021, when the subsidy ends.
In addition, starting April 1, employers may offer you a special enrollment period of 90 days to enroll in another group health plan, although premiums cannot exceed the amount you have already paid. This is an optional policy for employers, so you will want to check with your former employer if such a policy is being proposed.
How to get a subsidy
Your employer or health insurance company must send you a notice of eligibility. If you expected it but haven’t received it yet, contact your company’s HR department or health insurer directly. However, once you receive notice of your eligibility for COBRA, you will need to register within 60 days .