Tuesday, February 23, 2010

Eligible for COBRA premium reduction?

Q: I was recently laid off. How can I tell if I am eligible for the COBRA premium reduction?

A. Federal law makes the COBRA premium reduction available for "assistance eligible individuals."

An Assistance Eligible Individual is a COBRA qualified beneficiary who meets the following requirements:

1. Has a qualifying event for continuation coverage under COBRA that is the employee’s involuntary termination during the period beginning September 1, 2008 and ending February 28, 2010 ; and,

2. Elects continuation coverage timely.

Note: Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction.

Source: http://www.dol.gov/ebsa/faqs/faq-cobra-premiumreductionEE.html

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