What is COBRA?

As a result of the downturn in the market, we decided to post
information concerning the various options for people who have
lost their jobs or are concerned about losing their current
employment. We will start with COBRA,Consolidated Omnibus Budget
Reconciliation Act. This program allows qualified laid-off workers
to stay in their employer's group plan. It is costly because the
laid-off employee must pay the entire cost of the health insurance
premium.
Under the stimulus relief package the government will pay 65 percent
of the premiums for up to nine months. There is another way to save.
Under the stimulus relief, employers can offer you a cheaper plan if
they have one. In the past you had to stay in the plan you were in.
You must sign up for COBRA within 60 days of being laid off.
People laid off between Sept 1, 2008, and Feb 16, 2008 have an extended
sign up period. You do not have to switch plans at the same time you
accept COBRA. The law says you can switch to a lower plan anytime with-
in 90 days of being laid off, but you must have signed up for COBRA.

Based on talking to people, you must ensure that your company sends the
COBRA paper work to you in time for you to make an informed decision.
As of present,the stimulus package relief has not kicked in at some
companies and the COBRA premiums have not been reduced.
However, people are being told by their companies that once the monies
are received from the government, then all payments will be reduced
retroactively and the credit will be applied to the new monthly premiums.

For more information go to: http://www.dol.gov/dol/topic/health-plans/cobra.htm

Reference, If laid off, act soon for COBRA relief ,
by Peter King, Newsday March 2009

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