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Q:  I worked at a state agency, I left voluntary (terminated) which is out to an appeal. I then took another job which would not cover me medically for 6 months before I would be eligible for medical insurance. I was there for 2 1/2 weeks and the position was eliminated due to budget cuts, therefore I left voluntarily, laid off. Am I eligible for the stimulus cobra insurance help? I have a disabled husband who does not work and support 2 children. I was accused of not correctly filling out a transfer for a juvenile incarcerated which I filled out completely.

A: To be eligible for the reduction, you need to be eligible for Cobra.  If you were never on your new jobs health insurance, Cobra through them would not be an option.  You may be able to get Cobra from your employer before them, but you would need to contact them directly and talk with either the HR department of their Cobra administrator.  To be eligible for the reduction in your premiums for Cobra, you would have to have been involuntarily terminated either laid off or fired.

The American Recovery and Reinvestment Act of 2009 (also know as the federal stimulus package) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months.

The premium reduction for COBRA continuation coverage is available to "assistance eligible individuals".

An "assistance eligible individual" is the employee or a member of his/her family who:

·         is eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009;

·         elects COBRA coverage; and

·         is eligible for COBRA as a result of the employee's involuntary termination between September 1, 2008 and December 31, 2009.

Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction. There is no premium reduction for premiums paid for periods of coverage prior to February 17, 2009.

If an individual’s modified adjusted gross income for the tax year in which the premium assistance is received exceeds $125,000 (or $250,000 for joint filers), then the amount of the premium reduction during the tax year must be repaid.