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Q:  I just lost my job and need to know how to apply and get my previous employer to pay their part and get coverage?

A:  We are a provider of Cobra information and Alternative Solutions.   We are not affiliated with Cobra.  Cobra is NOT a company, but a federal law that allows you to continue on the previous employer’s group health insurance plan.   If you need to elect Cobra or are finding out more information regarding your Cobra Benefits, you must contact your employer.  They send out a packet for you to continue (or extend) your current health coverage. 

There will be NO lapse in your coverage if you elect Cobra with your past employer. Cobra goes back retro-active once you sign up within the time frame listed in the packet.  It WILL cover all pre-existing conditions since it is the same health plan you had.  If you are pregnant or are seeking treatment for any type of health conditions, you really should consider continuing on Cobra.  This will be your only option to have coverage for any pre-existing condition.

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.