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COBRA/ARRA Subsidy California

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  • COBRA/ARRA Subsidy California

    If an employee has a reduction in hours which then eliminates benefits, does this qualify for the subsidy?

  • #2
    Yes the employee would qualify.

    "Qualifying Events for Employees:

    -Voluntary or involuntary termination of employment for reasons other than gross misconduct
    -Reduction in the number of hours of employment"

    http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.HTML

    Comment


    • #3
      quote Blessed123 - "Yes the employee would qualify.

      "Qualifying Events for Employees:

      -Voluntary or involuntary termination of employment for reasons other than gross misconduct
      -Reduction in the number of hours of employment" end quote by Blessed123

      To get the subsidy, it must be an involuntary termination of employment.

      Read the link you posted above further.
      Q17: I have heard that the Stimulus package signed by the President included a temporary COBRA premium reduction and additional enrollment opportunity. I would like more information.
      The American Recovery and Reinvestment Act of 2009 (ARRA) provides a premium reduction to certain qualified individuals and expanded eligibility for COBRA.

      Individuals who are eligible for COBRA coverage because of their own or a family member’s involuntary termination of employment that occurred from September 1, 2008 through December 31, 2009 and who elect COBRA may be eligible to pay a reduced premium amount that is only 35% of the premium costs for your COBRA coverage for up to 9 months.
      Last edited by Betty3; 10-28-2009, 02:16 PM. Reason: add quote
      Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

      Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

      Comment


      • #4
        Here is a link on the COBRA reduction under ARRA.

        http://www.dol.gov/ebsa/faqs/faq-cob...ductionEE.html

        Q1: I have heard that the stimulus package signed by the President included a temporary COBRA premium reduction. I would like more information.
        The stimulus package, which was enacted as the American Recovery and Reinvestment Act of 2009 (ARRA) temporarily reduces the premium for COBRA coverage for eligible individuals. COBRA (the Consolidated Omnibus Budget Reconciliation Act of 1985) allows certain people to extend employer-provided group health coverage, if they would otherwise lose the coverage due to certain events such as divorce or loss of a job.

        ***Individuals who are eligible for COBRA coverage because of their own or a family member's involuntary termination from employment that occurred from September 1, 2008 through December 31, 2009 and who elect COBRA, may be eligible to pay a reduced premium.*** Eligible individuals pay only 35% of the full COBRA premiums under their plans for up to 9 months. This premium reduction is generally available for continuation coverage under the Federal COBRA provisions, as well as for group health insurance coverage under state continuation coverage laws.

        If you were offered Federal COBRA continuation coverage as a result of an involuntary termination of employment that occurred at any time from September 1, 2008 through February 16, 2009, and you declined to take COBRA at that time, or elected COBRA and later discontinued it, you may have another opportunity to elect COBRA coverage and pay a reduced premium.
        Last edited by Betty3; 10-28-2009, 01:54 PM.
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

        Comment

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