Sunday, March 01, 2009

Employees laid off Sept.1st or after can receive COBRA & mini COBRA coverage for 35% of the rate.

In summary new federal regulations will:

+ Allow individuals, laid off September 1st or after, to receive COBRA or Conn mini COBRA coverage for 35% of the normal rate.

+ Mean individuals enrolled in the new COBRA option will make their 35% payment to their former employer.

+ Enable COBRA employers, 20 or more employees, to be reimbursed for their 65% of the premium by taking a deduction from their next payroll tax payment.

+ The reimbursement for individuals enrolled in Conn mini COBRA will be done by the employers medical insurance company.


Some frequent questions:

+ How long can coverage for 35% be obtained? Nine months.

+ When can an individual start to receive coverage for 35%? March 1, 2009.

+ What if the laid off employee did not elect coverage when it was offered? They will receive a new notice of eligibility to elect coverage.

More details will be released soon by the Department of Labor.

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