Prospects for Unemployment & COBRA Extensions

[ggg0959]

Please check - www.ins.state.ny.us/cobra/cobra_ext_36.htm
I am not sure if I am understanding this correctly.

Also, I have read the info you provide and thank you.

[diorgirl]

Originally Posted by ggg0959

Please check - www.ins.state.ny.us/cobra/cobra_ext_36.htm
I am not sure if I am understanding this correctly.

Also, I have read the info you provide and thank you.

Thanks for providing that link.

You are absolutely correct. New York State has funded an 18-month extension to the federal COBRA program -- which the State terms "mini-COBRA."

Nothing of this sort -- a state add-on to the federal COBRA benefit -- has been passed in New Jersey, nor have I seen any reference to discussion of it. But it's something that I will be on the look-out for, now that I know that NY has it in place.

Once again, many thanks!

[diorgirl]

Just to follow up on our conversation about mini-COBRA coverage offered by many states:

Federal COBRA laws apply only to group health insurance plans with 20 or more employees. The majority of businesses operating in any state do not fall under federal COBRA regulations. Therefore, most states have enacted their own versions of COBRA regulations. These state COBRA laws are often referred to as mini-COBRA. Not all states have mini-COBRA legislation, and the regulations that are in existence may vary substantially from one state to the next.

The laws in New Jersey are similar to those governing mini-COBRAs in many states: Those states require group health plans with 2-19 employees to offer 18 weeks of continuation coverage to employees of any size group, while extending this period to 36 months for dependents of deceased employees and 29 months for the disabled. A premium as high as 102% of the premium paid by the employer can be charged to the ex-employee electing COBRA coverage.

COBRA State Variations - Mini COBRA Information By State

However, under legislation passed in July 2009, New York State has expanded its state-funded mini-COBRA to include those who receive regular federal COBRA, as well.

Before the new New York state law went into effect, the length of time that a person could have state continuation coverage depended on the reason why the person was losing coverage. For example, under COBRA or mini-COBRA, an employee who loses coverage due to termination of employment (voluntary or involuntary) or reduction in hours, can continue his or her employer's coverage for up to 18 months from the date coverage would otherwise terminate.

Under the new law, a person will be able to continue coverage for a total of 36 months.
(1) People eligible for mini-COBRA (state continuation coverage) may continue their coverage for a total of 36 months, regardless of the reason for the coverage loss.
(2) People eligible for federal COBRA may elect 18 months of COBRA and then an additional 18 months of mini-COBRA, for a total of 36 months.

COBRA: State Continuation Coverage Extension to 36 Months

[ggg0959]

If I understand this correctly, NJ does not have a mini-cobra program for the employee who was laid off. The NJ mini-cobra only covers 36 months for the dependents of the deceased employee and 29 months for the disabled.
I was laid off in Feb. 2009 and I have been on cobra (35%) since March. For the next 9 months, I will be on cobra, paying 100% to my former employer. That rate is not too bad. I also have a pre-existing condition. So when the 9 months is over and I am still unemployed, I will have to look for another medical plan, on my own, and that will be very expensive. The laid off employee should not be excluded. What can we do in NJ?

[diorgirl]

Originally Posted by ggg0959

If I understand this correctly, NJ does not have a mini-cobra program for the employee who was laid off. The NJ mini-cobra only covers 36 months for the dependents of the deceased employee and 29 months for the disabled.

What can we do in NJ?

You do understand the situation in NJ correctly. Unfortunately, NJ claims not to have the funding to provide state-sponsored mini-COBRA coverage to so large a goupr of jobless in this period of extended unemployment.

To be honest, I was shocked to see that NY can afford to offer it.

In any event, for NJ it seems the only break right now would be for the federal government to extend the COBRA premium subsidy -- by lengthening the timeframe for the subsidy into 2010 for those currently enrolled, as well as by lengthening the eligibility period for newly jobless.

That would be either through a new Stimulus program (which the White House has said it will not sponsor), or by amending the American Recovery Act which offered the first stimulus package.

[ggg0959]

Thank so you much for researching this.

[diorgirl]

As reported yesterday by NewsBlaze on line:

Congressman Sestak Introduces Legislation to Extend Emergency Healthcare

Congressman Joe Sestak (D-PA) has introduced legislation to extend assistance for unemployed workers to purchase health insurance. The Extended COBRA Continuation Protection Act of 2009 (HR 3930) extends by six months a provision from the Economic Stimulus Bill that provides 65 percent of health insurance premiums to individuals eligible for COBRA benefits who have been involuntarily terminated during the economic recession.

Sestak's bill extends COBRA benefits in three main ways:

(1) It extends by 6 months -- from 9 to 15 months -- the total allowable time an unemployed worker can receive COBRA premium assistance. This will allow workers who enrolled in the program in February to continue on until at least May 2010.

(2) It extends this assistance to individuals who are involuntarily terminated between January 1 and June 30, 2010.

(3) It extends eligibility for traditional COBRA coverage an additional 6 months, from 18 to 24 months, for those terminated at the beginning of the economic recession in 2008.

No extended COBRA premium assistance or extended COBRA benefits would extend beyond December 31, 2010.

Congressman Sestak has advocated for expanded COBRA benefits since entering office. He introduced H.R.694, the COBRA Coverage Extension Act of 2009, which would have extended COBRA coverage to 24 months. Further, he supported an amendment to H.R. 3200, the America's Affordable Health Choices Act, allowing individuals currently receiving COBRA health insurance coverage to stay on that coverage until new health insurance exchanges are in place. This amendment was adopted in the House Education and Labor Committee on which Congressman Sestak sits.

Congressman Sestak Introduces Legislation to Extend Emergency Healthcare

[C.C]

I was under the impression that CA has always required 36 months?

Seems like there is a bit of confusion about the term "extension" referring to COBRA eligibility itself vs. the premium subsidy...

[diorgirl]

Originally Posted by C.C

I was under the impression that CA has always required 36 months?

Seems like there is a bit of confusion about the term "extension" referring to COBRA eligibility itself vs. the premium subsidy...

Federal law has always provided 18 months -- with some exceptions (for example disability).

Some states have added "mini-Cobras" -- like New York State mentioned in earlier posts. In those cases, the states themselves provide funding for the additional months over the 18 months mandated by federal law. Perhaps California has such a mini-COBRA addition. If you are in California, you might want to check locally.

Sorry, I don't see any "confusion" about "extension." As stated in the post above about the pending legislation (HR 3930) -- extensions would be provided in three separate ways:

(1) It extends the length of the COBRA premium subsidy from 9 to 15 months.

(2) It extends the eligibility period for the COBRA premium subsidy past December 31, 2009 (which was the original cut-off), to those terminated through June 30, 2010.

(3) It extends the length of basic federally mandated COBRA from 18 months to 24 months (this has nothing to do with the "mini-COBRA" periods that may be added by individual states, and it has nothing to do with the COBRA premium subsidy).

[ggg0959]

How much time do you think until this bill passes? I hope it does not take that long. What is the process for this to pass. I am now my last month for the 35%. This would be a wonderful saving for many unemployed.