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New COBRA rules lower premium rates for laid-off workers. By Brett Graff...
When morning a job loss remember that the most important thing is your health...insurance. COBRA - a law that lets laid-off employees buy health insurance for the less expensive group rates rather than the premium-priced private plans - has been around since 1985. Basically, the ex-employee can step in for her former company and pay for her own health insurance. If that doesn't sound like much of a consolation, consider that she's charged a rate as though she was buying in bulk. But the Economic Recovery and Investment Act of 2009 has put even that price in closer reach. If you've lost - or lose - your job between September 1, 2008 and December 31, 2009 - you'll be charged just 35 percent of the total for health insurance. Basically - that's 65 percent off. The government will pick up the tab for that portion by giving the insurance company a tax credit at the end of the year. The deal starts for premiums billed on March 1, 2009 lasts until you're eligible for other group coverage, for nine months, or your maximum period of COBRA ends -- which ever comes first. HOW TO SIGN UP: Go to your ex-company's HR or benefits department for the paperwork. If you initially declined the offer but have since changed your mind, head right back there and let them know. If you didn't get any information on COBRA, call the U.S. Department of Labor at 866-444-3272. YOU MAY NOT BE ELIGABLE: Not everyone is. If you're covered under your spouse's insurance or Medicare, this isn't for you. Also, if you make too much money - meaning you're single and have a modified adjusted gross income of $145,000 or are married and are taxed on $290,000 a year - then you'll be expected to repay that 65 percent.
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