Health Insurance Subsidy for Jobless Workers

If you have any questions relating to job loss, and the financial issues that often occur, please contact us at 1-800-375-3089 for a free consultation.

Federal Assistance for Health Insurance Costs
The subsidy created by the American Recovery and Reinvestment Act of 2009 (ARRA) to help jobless workers afford their health insurance premiums was recently extended by Congress.  The Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") requires many employers to offer the option to have continued group health coverage after an employee is terminated or when other qualifying events occur.  Under the ARRA, the federal government provides a temporary 65% subsidy (premium reduction) of premium payments that eligible workers would need to pay to continue group health insurance.  To qualify for the subsidy, workers must have been involuntarily terminated on or after September 1, 2008.  The Act also gives workers who did not elect to continue health insurance coverage under COBRA extra time to make that election and receive the subsidy.

ARRA COBRA Benefits Extended
The new ARRA legislation extends the period during which involuntary terminations would trigger subsidy eligibility.  Workers involuntarily terminated between September 1, 2008 and February 28, 2010 are now eligible for the subsidy.  The maximum subsidy period was also expanded from 9 months to 15 months, including workers currently receiving subsidized COBRA coverage.

Are You Eligible for the COBRA Subsidy?
If your employment was terminated within the last 120 days, you may still be able to elect COBRA coverage and be eligible for the ARRA subsidy.  If you were eligible for the subsidy and exhausted the original 9-month subsidy but continued to pay the full premium, you may be eligible for a refund or credit for continuing coverage.

Coping with Job Loss
Losing your job is never easy.  It can spark a host of financial issues involving debt collection, unpaid child support, mortgage delinquency and even bankruptcy.  There are things you can do proactively to make is less painful.  Collect all compensation due from your job.  Apply for unemployment compensation.  If your cash reserves are short, deal with your financial issues proactively and don’t ignore them.  With the right attitude, you can use this opportunity to take a step back and consider new directions that may well prove to be more rewarding both personally and financially.

Questions Relating to Job Loss

If you have any questions relating to job loss, and the financial issues that often occur, please contact us at 1-800-375-3089 for a free consultation.

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Disclaimer: The information contained in this message is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the issues related to issues involving job loss and employment. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state.