Posts Tagged ‘COBRA’

Is There a Answer for COBRA Subsidies?

Monday, January 18th, 2010
Worries grow as those Californians who have been receiving assistance with their COBRA premiums are faced with losing financial assistance. As federal stimulus money dwindles, the 65% of premium formerly covered by this subsidy will expire, leaving many to make a tough choice – pay the premiums or go without coverage. COBRA (the Consolidated Omnibus Budget Reconciliation Act) was passed in 1985, allowing involuntarily terminated employees to keep their current health plan, and take over the payments for their monthly premiums. However, after many years and skyrocketing health care inflation, many people are finding that their COBRA premiums are exceeding their unemployment benefits.
 
If reports are correct in showing that 40% of newly employed people applied for the COBRA subsidy, these numbers can mean that the number of uninsured people will rise along with the lack of federal support. There are some plans in the works, however, which may bring some much needed relief:
 
HR 3930 would extend the period of eligibility through June 2010, increase the maximum duration of the subsidy to 15 months and end all subsidies at the end of December 2010.
 
S 2730 by includes the same provisions as the House bill and would also increase the federal subsidy from 65% of the premium to 75%, as well as expand eligibility to include employed people who lose health coverage because of involuntary reduction of hours.
 
COBRA Subsidy Laws are changing all the time. We will try and bring you the most updated information as we can. In the meantime, there are many websites to help you keep up with the changes. We are also happy to answer any questions you have!

Expiration Date Nears for COBRA Federal Subsidy

Monday, November 2nd, 2009
The federal economic stimulus package which covers 65% of the cost of COBRA premiums is set to end as of December 2009. This reduction was designed to assist those who had an involuntary termination of employment and were eligible for COBRA during the period of September 1, 2008 through December 31, 2009. Though the subsidy is set to end after a period of 9 months, this does not mean you are going to lose your coverage. Instead, you will now be covering the entire cost for the remainder of your 18 months, or longer if your coverage is eligible for extension. The subsidy will end prior to the 9 months in the case of eligibility for coverage under a new group plan, eligibility for Medicare, or in the case of non-payment of the remainder of the COBRA premiums.
 

Let us help you find alternate coverage before your COBRA expires. There are many options for you and your family, and we are happy to help you determine whether a new plan is the best route, or to stay on COBRA for the remainder of your eligibility period.  It is our pleasure to help you determine the best choice for your health insurance coverage.

How Agents and Brokers Make a Difference

Friday, June 12th, 2009

Many people may still not quite understand what role an agent or broker plays when it comes to your health insurance plan. You don’t pay fees to work with an agent or broker, and the return in services in invaluable.
                                                        
Most importantly, we serve to help you understand the complex world of health insurance. Whether you are an individual or family shopping for coverage or an Employer looking to cover their employees, we provide you with access to multiple insurance companies and plans, thereby ensuring you have all the information necessary to make your decision.
 
Agents also work to negotiate the best rates for you. We work with the carriers to make certain your rates are the lowest they can be. They serve as your underwriting liaison to contest declines, or work with rated policies. This is the case for all plans – individual/family plans and small/large businesses as well.
 
When it comes to group plans, we work to take the burden of administering your plan off of you. We will walk you through the plan options, negotiate your rates when it comes to renewal time, and help your employees complete all of their paperwork. When it comes to new hires, terminations, or COBRA enrollments, again we step in to facilitate the necessary paperwork.
 
Once your plan is issued, we continually work to help you. Whether it is obtaining medical records for claims processing, assisting your pharmacy in getting a medication authorized, or explain detailed claims benefits, you can always count on us to be there to assist.
 
Health Reform concerns often bring up the concept of removing agents from the picture. This would destroy the personalized service you have received from us for years.

California, the Stimulus Package, and You

Wednesday, May 13th, 2009

We have all heard by now that the American Recovery and Reinvestment Act of 2009, also known as the Stimulus Package should bring some much needed relief to the State of California. As the unemployment rate jumps to historic highs, and millions of Californians find themselves also without health insurance, it is vital that federal agencies step up to the plate. The goal is to obtain health coverage assistance, increase the quality of health care, and invest in health-related technologies.

So what does this mean for us? According to American Recovery and Reinvestment Act analysis, some of the major health care provisions are:

··         Medi-Cal support, including increases in federal matching payments, increased Disproportionate Share Hospital funding, a moratorium on federal Medicaid provider reimbursement changes, and extension of Transitional Medi-Cal and Indian health care programs

··         Assistance with health coverage, including subsidies for and extensions of COBRA coverage and expansion of the federal Health Care Tax Credit

··         Investments in primary care, including grant opportunities, enhanced reimbursement for community health centers, and additional support for primary health care workforce programs

··         Elevated status for comparative effectiveness research, including establishment of a federal advisory board and dedication of substantial funding.

··         Support for public health activities, health and science research and facility modernization, and health information technology, including telehealth and broadband programs.
 
We are always on top of current insurance news so we can ensure you are informed. Please call us with any questions or send an email with your comments. Thanks for your continued support!

Changes to Federal COBRA for 2009

Wednesday, May 6th, 2009

In February of 2009, President Obama signed into law the American Recovery and Reinvestment Act. Designed as part of the economic stimulus bill, this also provides some major assistance to COBRA coverage for certain individuals. Some of the major points to this bill are:

  • Will provide for a federal subsidyon the COBRA continuation coverage premiums for qualified beneficiaries due to involuntary termination of employment between Sept. 1, 2008 and Dec. 31, 2009 (Assistance Eligible Individuals)
  • Qualified beneficiaries will include the covered employee, the covered employee’s spouse, and covered employee’s dependent children. This means that the spouse or dependents of the involuntarily terminated employee will be eligible for benefits even if the employee does not elect COBRA.
  • There will be a federally provided COBRA subsidy of 65% of the amount owed by the Assistance Eligible Individual (AEI). A payment of 35% made by the AEI is considered payment in full. The remaining amount will be covered by the plan, insurer, or employer and will be reimbursed by the government via payroll tax credits. Note – this subsidy is not offered to health flexible spending account plans.
  • Those qualified beneficiaries that experienced involuntary termination of employment between September 1, 2008 and February 17, 2009 who did not elect COBRA during the initial 60 day period will now be provided another 60 day election period during which to elect COBRA coverage.

Please call or email us with any questions!


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