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Q:  My husband was laid off from his job in November but health insurance coverage for both of us continued until 12/31/08. I moved his coverage and mine to my employer's insurance and that is handled by the PEO we hired to handle our entire payroll and benefits package. We learned about the 2nd chance at Cobra through the stimulus package and I inquired about moving my husband's coverage back to the Cobra coverage since it will save us about 150.00 per month and leaving my coverage with our PEO. I was told this stimulus package was not a qualifying incident and I could not remove him from the insurance with them and take him back to the Cobra through the stimulus package. I just need another answer since this PEO seems to make arbitrary rules all the time.

A:  Your husband is eligible for Cobra; however he would not be eligible for the Cobra Stimulus because you have the opportunity to have health benefits through your employer.  Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction.