Fed initiative with COBRA payment
Seattle – COBRA a part of stimulus package – American Recovery and Reinvestment plan act of 2009 (ARRA), was signed as law by the president, Mr. Barack Obama on Feb 17 2009. Consolidated Omnibus Budget Reconciliation Act (COBRA), enables the provision of giving subsidized health insurance to the people who have lost their jobs in the period of September 1, 2008 to December 31, 2008. Federal government is taking this initiative to ensure that because of not of having job people don’t lose their health insurance.
According to COBRA, federal government will take care of sixty five percent of the premium of their health insurance. This proposal allows an individual to keep their health insurance plan from eighteen months to thirty six months after their involuntary termination with the employer. Individual has to clear all the premium liabilities till date. COBRA health insurance was initially not affordable by many people as it costs $1000 a month for a family coverage. Data of 2008 shows that average monthly premium for a family was $1183. In order to pass the advantage, government has subsidized these rates and has informed that an individual has to pay only thirty five percent of premium charges for first nine months and rest of the sixty five percent would be taken care by government. This plan is available for the individuals whose family income is less than $ 250,000 or $ 125,000 for individuals.
Federal government have give the timelines to employers to contact their employees who have lost their jobs from Sept. 1, 2008 to Feb. 16, 2009 within sixty days (by April 17, 2009) and who have lost their jobs after Feb. 17, 2009 within forty four days. In order to get started soon, employees may also contact Department of Labor and seek their help. Many insurance companies have proposed their revised plans under COBRA and an information website is launched for getting more information and to compare different plans.
In this rough economic time, federal government initiatives like COBRA will give temporary benefits to the people and is strongly recommended for eligible populace to take advantage.