Labor & Employment Law

COBRA Subsidy

COBRA Subsidy

H.R.1-341 subchapter A of chapter 1 of the Internal Revenue Code of 1986

Employees laid off from their position may be eligible to receive a 65% "COBRA subsidy" for the payment of their health insurance premiums for up to nine months. The employee is responsible for paying the remainder, i.e., 35% of the cost of their health insurance.

Individuals laid off from their job between September 1, 2008 and December 31, 2009 having an annual incomes less than $125,000 (individual) or $250,000 (joint) are eligible for this assistance, which will used to pay for either individual or individual and dependent coverage, as the case may be.

The subsidy ceases in the event the individual enrolls in a new employer?s health insurance plan or becomes eligible for Medicare.

The U.S. Department of Labor has placed information, entitled Continuation of Health Coverage ? COBRA on the Internet at: http://www.dol.gov/dol/topic/health-plans/cobra.htm

The text of the bill is posted on the Internet at:

http://www.cms.hhs.gov/COBRAContinuationofCov/Downloads/ARRA_Section_3001_Statutory_Text_Excerpt.pdf

Full post as published by New York Public Personnel Law on April 08, 2009 (boomark / email).