COBRA Insurance

[OldManOnCampus]

Hi everybody,
I just wanted to make sure everyone knows about the COBRA provision in the new Simulus plan from the Federal government. They will cover 60% of your COBRA if you are off work from between Aug 2008 to Dec 2009. They give a 60% (percentage I heard last, its changed three times) tax credit to your (former) employer and then you only need to pay the 40% to the employers insurance plan. You will be able to sign up for COBRA even if you didn't take it when originally offered by your employer but you need to have entered the COBRA ins period during the above time period.

I know its still expensive but its better than paying the full amount. We are paying $990 per month because I'm out on Comp and my wife was laid off.

Another thing that was in the bill- I have not heard it being negotiated away- is taking away the income limit to get medicaid through the state. Even if you make too much money to normally qualify then if off work you still be able to get coverage through it. In the past it has been impossible to get if you are a single or married couple without kids.

I hope this helps out some people with getting medical coverage.

[UndercovrAngel]

OldManonCampus,

You are correct in your stating the information regarding the Cobra payments. In the package just passed by Congress, it is 60% to the employer, 40% for the employee. However, it is only good for 9 months.

The House also wanted to let states offer temporary Medicaid coverage to jobless individuals who did not qualify for Cobra coverage. They dropped this proposal entirely.

Those on disability/social security will be getting a one time check for $250..down from the $300 the senate initially had planned. A middle-class tax cut will give individuals $400 and couples $500. They have also extended the amount of time that unemployment can be collected and made the first $2,400.00 exempt from income tax.

I however like my mom's idea the best. Give everyone $5000 and let them use it in whatever manner they want. Big screen tv's, car's, computers etc... or just put it in a savings account. The bank would then have more money to loan and if done right, the depositor would earn interest on their money. With that kind of money infused into the economy, it wouldn't take long before everyone would be back on their feet.

Angel ^j^

[wittyl]

OldManOnCampus Wrote:Hi everybody,
I just wanted to make sure everyone knows about the COBRA provision in the new Simulus plan from the Federal government. They will cover 60% of your COBRA if you are off work from between Aug 2008 to Dec 2009. They give a 60% (percentage I heard last, its changed three times) tax credit to your (former) employer and then you only need to pay the 40% to the employers insurance plan. You will be able to sign up for COBRA even if you didn't take it when originally offered by your employer but you need to have entered the COBRA ins period during the above time period.

I know its still expensive but its better than paying the full amount. We are paying $990 per month because I'm out on Comp and my wife was laid off.

Another thing that was in the bill- I have not heard it being negotiated away- is taking away the income limit to get medicaid through the state. Even if you make too much money to normally qualify then if off work you still be able to get coverage through it. In the past it has been impossible to get if you are a single or married couple without kids.

I hope this helps out some people with getting medical coverage.

So, let me make sure I understand.
I was laid off the end of june, 08 and I believe I recieved my Cobra info the beginning of July. Given they give you so many days to reply I believe 60 days. Would that allow me to take avantage and take it now? Is it up to me to call the past employer regarding signing up and will they start it from this date?
Do you think Medicaid would be the cheaper way to go? I am single, no kids and 56.
Thank you.

[OldManOnCampus]

From what I have read ,it is only if you were laid off between Aug 08 and the end of this year. So I don't think you are eligible for it. I haven't heard for sure if the Medicaid provision was left in or not. I know the House version had it and the Senate version took it out, so wait a few days after President Obama signs it and then call your state or county office that handles medicaid. Sorry I don't have a better answer for you.

[UndercovrAngel]

According to what I read on the version that was passed, you had to have been "laid off" after September 1,2008 in order to get the Cobra benefit. So if you lost your job before then, you won't qualify.

The actual amount that the government is going to pay is 65% for only 9 months, instead of the year that it started at. If you were laid off after September 1,2008 and turned down your cobra as the cost was to high, then you will be able to go back and pick it up now at the discounted rate for the next 9 months. During that time, you will need to either save to stay on cobra after your time is up..or look for cheaper insurance elsewhere.

I will be eligible for the incentive, as I didn't loose my job till October 4,2008, but being unaware of this part of the stimulus package, I have applied for medicaid. I will probably stay with medicaid if accepted, as I am also getting everything together to apply for SSDI and SSI. A lot will depend upon what my PM Dr has to say tomorrow about the herniated disc at t8-t9. I called and rescheduled my appointment from Friday to an earlier date and time as I can't sleep due to worrying about it.

Angel ^j^

[sparkey]

So I am being laid off on Feb. 27th. That will be my last day of work. I carry the insurance for my husband and I. I am so worried about the insurance right now because that is how I pay for my medication I take for the pain. I contacted HR because my husband is still working a few more months with the same company. I want it switched over in his name. I was told he needs to contact the benefit dept and that because I am being laid off that it should be a easy switch over.

I am waiting on hubby to call them today and go from there. If not, or if he gets laid off the end of next month, from what I am reading I can go for cobra have 60% off? Also have the first 2,400 exempt for taxes on my unemployment pay?

[buildergirl1973]

i think its 65% that passed not 60%. hopefully your hubby can carry your ins and maybe they will find something else for him to do after the job is over. maybe they will find you something also. good luck!

[Manley2]

You can bet they wrote this up so it will help very few people. If you look most of it doesn't do very much at all to help you and me.