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Q:  I have been paying my own premium for 1 year! Due to an injury that happened at work! Therefore, I have loss of work time/hours cut/unable to work at all. Would this qualify me for the "discount" premium? I am only drawing a small amount and when I have to pay $345 a month to keep my insurance it does not leave my anything for the rest of the month. Please I need someone to explain this to me. My work hours have been totally cut due to circumstances beyond my control.

A:  You can also visit the Department of Labors website to view more information at www.dol.gov/COBRA  

To be eligible for the reduction in your COBRA premium you had to have involuntarily lost your job after September 1^st, 2008.  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.