The New COBRA Guidelines In A Nutshell!

We are getting calls regarding the new guidelines for COBRA. As you probably know, President Obama signed the American Recovery and Reinvestment Act on February 17, 2009. The law gives “Assistance Eligible Individuals” the right to pay reduced COBRA premiums for periods of coverage beginning on or after February 17, 2009, and can last up to 9 months.

Now, to be considered an “Assistance Eligible Individual” and get the reduced premiums, the individual must meet the following guidelines: 

• The time frame to be eligible for continuation coverage is from September 1, 2008 through December 31, 2009 and elect coverage;
• To be eligible, the individual must have been “involuntarily” terminated between September 1, 2008, through December 31, 2009;
• The individual must not be eligible for Medicare;
• The individual must not be eligible for any other group health plan such as a plan sponsored by a successor employer or a spouse’s employer.

If the former eligible employee was offered, but did not elect, continuation coverage or who elected continuation coverage and subsequently discontinued it may have the right to an additional 60-day election period.

More information is available at:

Administration (EBSA) at 1-866-444-3272 or visit the EBSA website at www.dol.gov/ebsa.