COBRA Subsidy OpportunityPresident Obama recently signed the American Recovery and Reinvestment Act (ARRA). A portion of that Act gave certain individuals who are eligible for assistance the right to pay reduced COBRA premiums. More information on COBRA provisions of the ARRA can be found at the Department of Labor Web site.
If you are a former CalPERS health member who lost health coverage due to an involuntary loss of employment (for reasons other than gross misconduct) on or after September 1, 2008, you may have an opportunity to pay less for your COBRA coverage. Here are some additional facts:
-
Under the ARRA, eligible individuals pay only 35 percent of the COBRA health premium. The health plan will bill the member for this portion.
-
Upon receiving payment from the member, the health plan will bill the employer for the remaining 65 percent of the COBRA health premium. Employers recover this cost through their federal payroll tax payment.
-
The subsidy is only available for nine months of COBRA coverage and is available for use on premium payments for coverage on or after March 1, 2009.
-
Eligibility for the COBRA subsidy consideration is based on the character of discharge from the agency. Employers must determine if the discharge was involuntary and for reasons other than “gross misconduct.”
-
If you have questions regarding your status for this benefit, you should contact your former employer.
Additional Resources
Federal Notice (PDF, 32 KB)
Summary of the COBRA Premium Reduction Provisions under ARRA (PDF, 100 KB)
COBRA Continuation Coverage Election Form (PDF, 20 KB)
Request for Treatment as an Assistance Eligible Individual (PDF, 101 KB)
FAQs
Dated: 04-15-2009
|
Eligibility & Enrollment
