10 months ago
Share
Thousands of Arkansans have found themselves blown over by the current economic tidal wave. One of the immediate concerns for many people who've lost their jobs is health insurance coverage. One option available is called COBRA. It's a federal law that allows individuals who have lost their medical coverage under a group plan to continue that coverage for a certain amount of time. COBRA applies to employer groups with over 20 employees. But many people say it's just too expensive. However, the federal stimulus plan amended the COBRA law to provide a subsidy to individuals who have lost their jobs involuntarily. Under the subsidy, individuals will only be required to pay 35-percent of the COBRA premium. Tuesday, Bob Alexander, an attorney with the Arkansas Insurance Department sits down with Liz Massey for "Today's THV at 6:30" for her "THV Working For You" segment. Alexander gives an example of how this will help make health insurance more affordable for laid off workers. For the state average, he says, the COBRA premium is $336 a month for single coverage. Applying the subsidy to this example, would drop it to $117. Another example, for family coverage it would be $900 a month, but if you again apply the subsidy, the monthly family premium would be $315. COBRA premiums and the amount of the subsidies vary from group to group. The federal subsidy only applies for 9 months. The involuntary termination from employment must occur between September 1, 2008 and December 31, 2009. The subsidy will apply to any COBRA premiums due after February 17, 2009. Individuals eligible for other group coverage will not be eligible for the subsidy. For more information click the link below. Once there click on News Releases and then click on the COBRA article.
