Q. I have heard that the stimulus package signed by President Obama includes a temporary COBRA premium reduction for my health insurance after my lay off from my job. I understand that if I qualify, I pay 35% of my COBRA premiums, and there is a 65% subsidy. How does the 65% premium subsidy get paid to me?
A. You will not receive a payment, according to the US Department of Labor. Assistance Eligible Individuals are responsible for paying only 35% of the COBRA premium for the period of coverage.
The remaining 65% of the premium is reimbursed directly to the employer, plan administrator, or insurance company through a payroll tax credit. For more information about the stimulus COBRA subsidy see the Department of Labor's FAQs.
Kaylee, it's great to hear! I appreciate your kind note - especially on a Monday morning! Thanks!
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