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eHealthInsurance, a leading online source of health insurance for individuals, families, and small businesses, has released an updated set of frequently asked questions (FAQs) for individuals and families whose access to the COBRA subsidy is scheduled to end after November 30, 2009. I have excerpted some of those below.
To read all the FAQs, go to:
COBRA Subsidy Extension: eHealthInsurance Answers the "What If...?" Questions (http://money.cnn.com/news/newsfeeds/articles/marketwire/0557210.htm - broken link)
Quote:
FAQs Regarding the COBRA Subsidy Expiration
Question: Will the federal COBRA subsidy be extended?
Answer: Congress is considering legislation to extend the COBRA subsidy. However, it is important to note that since COBRA currently only lasts 18 months, COBRA is not a long-term solution.
In the meantime, consumers should explore all of their options, including private health insurance. Searching, applying and qualifying for private health insurance alternatives to COBRA can take time, so consumers whose subsidies may end in the next three months should begin looking now.
Question: What if I just started receiving the COBRA subsidy a month ago -- are my funds going to dry up after November too?
Answer: No. If you qualified for the COBRA subsidy in the first place, the law currently provides that you will continue to receive assistance with your monthly premiums for a total of nine months from the date you started receiving the subsidy.
Question: Is there any risk in applying for private health insurance while I'm still on COBRA?
Answer: Your continued eligibility for COBRA is not affected by applying for a private health insurance plan. Once approved for private coverage, you can simply stop paying your COBRA premiums, and your COBRA coverage will expire. However, if you are denied coverage through a private health insurance plan (due to a pre-existing medical condition, for instance), you can still keep your COBRA coverage until your full 18 months of COBRA runs out.
Question: What if my subsidy funds are running out and I have a pre-existing medical condition?
Answer: If you have a pre-existing medical condition, you should talk to a licensed health insurance agent. Your best option may be to continue COBRA coverage, but an agent can let you know if there are affordable alternatives available.
If you absolutely cannot afford unsubsidized COBRA coverage, check out other government-sponsored options available in your state. The Foundation for Health Coverage Education (FHCE) has an excellent web site and their U.S. Uninsured Help Line can connect you with publicly-funded programs in your state. Their web site is Foundation for Health Coverage Education and their toll-free number is 800-234-1317.
Question: If I drop COBRA, can I re-enroll in COBRA at a later date?
Answer: With regards to the COBRA subsidy, it is unclear if any new legislation will allow for people to return to their COBRA coverage after cancelling it. Generally with COBRA coverage, you can only opt out and opt back in to COBRA within the first 60 days of your eligibility. If you cancel your COBRA coverage after that initial eligibility period, you cannot re-apply for COBRA coverage through the same group plan.
Always check with your COBRA administrator or a licensed health insurance agent before making any final decisions, just so you can be aware of any changes in COBRA benefits.
Question: Isn't this all going to change when health insurance reform legislation is passed?
Answer: If enacted, the proposed health reform legislation will not be implemented overnight. In fact, many of the health insurance reforms in the draft legislation are not expected to take effect until 2013.
For clarification, this article linked above refers to two bills which have been introduced in the House.
(1) The Sestak bill [HR 3930] for which we have reported much detail in this thread. HR 3930 (a) 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. (b) It extends this assistance to individuals who are involuntarily terminated between January 1 and June 30, 2010. (c) 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.
(2) The Carson bill [HR 3966], which was just introduced. HR 3966 is much more limited and would only extend the COBRA subsidy for involuntary terminations and loss of coverage occurring through June 30, 2010. [HR 3966 does not extend the length of the subsidy from 9 months to 15 months, nor does it extend traditional COBRA coverage from 18 months to 24 months.]
The article states that "these bills have not made it to the House."In fact, the bills have both been introduced in the House and are currently in committee; however, they have not reached the House floor for a full vote, which I assume is what the author intends to say.
Further, the article states that "no similar legislation has been introduced yet in the Senate."This is incorrect -- as reported in a previous post in this thread, Senators Brown and Casey have introduced S.2730 in the Senate, a bill which extends COBRA as would HR 3930, but would also increase the subsidy from 65 percent to 75 percent.
They better hurry up and get it moving because in 18 days it will be moot for many of us.
Quote:
Originally Posted by diorgirl
For clarification, this article linked above refers to two bills which have been introduced in the House.
(1) The Sestak bill [HR 3930] for which we have reported much detail in this thread. HR 3930 (a) 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. (b) It extends this assistance to individuals who are involuntarily terminated between January 1 and June 30, 2010. (c) 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.
(2) The Carson bill [HR 3966], which was just introduced. HR 3966 is much more limited and would only extend the COBRA subsidy for involuntary terminations and loss of coverage occurring through June 30, 2010. [HR 3966 does not extend the length of the subsidy from 9 months to 15 months, nor does it extend traditional COBRA coverage from 18 months to 24 months.]
The article states that "these bills have not made it to the House."In fact, the bills have both been introduced in the House and are currently in committee; however, they have not reached the House floor for a full vote, which I assume is what the author intends to say.
Further, the article states that "no similar legislation has been introduced yet in the Senate."This is incorrect -- as reported in a previous post in this thread, Senators Brown and Casey have introduced S.2730 in the Senate, a bill which extends COBRA as would HR 3930, but would also increase the subsidy from 65 percent to 75 percent.
They better hurry up and get it moving because in 18 days it will be moot for many of us.
As of today, both the House and the Senate are scheduled to recess for the full Thanksgiving week. So I think it is unlikely that anything will be passed before the end of November.
More likely, an extension of the subsidy will be passed later this year or early next -- and hopefully be made retroactive.
But if you drop out of Cobra because you can't afford it you can't get back in.
Quote:
Originally Posted by diorgirl
As of today, both the House and the Senate are scheduled to recess for the full Thanksgiving week. So I think it is unlikely that anything will be passed before the end of November.
More likely, an extension of the subsidy will be passed later this year or early next -- and hopefully be made retroactive.
But if you drop out of Cobra because you can't afford it you can't get back in.
That has not yet been determined for any future extension.
For the first subsidy, if you dropped out of traditional COBRA or simply didn't elect it because of the cost, you were able to enroll after the subsidy passed and the plan administrators were able to get the systems in place. So you did have another chance at enrollment.
If the intent of the new bill is to extend the subsidy, it would make sense for any bill passed after the November 30, 2009, date -- when so many recipients of the premium subsidy would no longer be able to afford COBRA -- to make the subsidy retroactive to include those people and allowing them to re-enroll.
^^ Yea, but this is the Feds we're talking about. The same people who made virtually no one elgible for the recent 20weeks extension vs the 14 week version.
^^ Yea, but this is the Feds we're talking about. The same people who made virtually no one elgible for the recent 20weeks extension vs the 14 week version.
You'll get no argument from me on that one.
But I'm a cynic, and I don't believe that -- of all the hundreds of staffers who read that UI extension bill for their Senators and their Representatives -- not even one pointed out the "oversight" about the expiration date.
It just seems like an awfully "convenient" error -- that may or may not be corrected after another month's unemployment numbers come in. But that's just my opinion.
According to today's edition of The Hill.com, Democrats hope to pass jobs legislation through the House before lawmakers leave for Christmas on Dec. 18, House Majority Leader Steny Hoyer said Tuesday.
Hoyer declined to give a dollar figure for what Democrats are planning, but he said he expects Democrats will at a minimum extend unemployment benefits and COBRA health insurance assistance for the unemployed.
House Speaker Nancy Pelosi (D-Calif.) has asked key committee chairmen for ideas on job creation, which Hoyer (D-Md.) said could be wrapped into one bill.
“It's my hope we will adjourn by Dec. 18,” Hoyer said in his weekly session with reporters. “I would certainly hope we would move something on jobs before that.”
Hoyer last week told lawmakers that the House could stay in session on Dec. 21 and 22, if necessary, to work on healthcare reform and other issues.
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Hoyer Says Extensions by Christmas
