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

Deny COBRA subsidy?

Q. My former employer says I don't qualify for the stimulus COBRA health insurance subsidy because I earned too much. He says they won't approve me based on my prior salary. I thought I qualified for the 65% subsidy since I was recently laid off. Can my (former) boss really do this?

A. Yes, under some circumstances. This subsidy phases out for individuals whose modified adjusted gross income exceeds $125,000, or $250,000 for those filing joint returns. Taxpayers with modified adjusted gross income exceeding $145,000, or $290,000 for those filing joint returns, do not qualify for the subsidy, according to the IRS. More information on the COBRA subsidy is available from the U.S. Department of Labor.

If you believe you have been inappropriately denied eligibility for the premium reduction, you may wish to speak with a US Department of Labor Employee Benefits Security Administration Benefits Advisor at 1.866.444.3272.