Finance and Economic

Federal subsidies for COBRA insurance coverage for involuntary terminated workers have been extended to 15 months – a move hailed by North Carolina’s insurance commissioner.

The subsidy, part of the federal stimulus plan, pays for 65 percent of the COBRA and mini-COBRA premiums for workers laid off from their jobs between Sept. 1, 2008 and Feb. 28, 2010. Previously, the subsidy ran out after nine months, after which the unemployed would have to pay the full COBRA premium.

“The COBRA subsidy extension is great news for North Carolinians who have been laid off and couldn’t continue their health insurance because of the often impossibly expensive premiums,” said state Insurance Commissioner Wayne Goodwin. “Many citizens in our state were approaching the subsidy’s original cutoff date and just didn’t know how they could pay for the full coverage premiums – or worse, they were forced to cancel their coverage once the subsidy ran out. I’m so pleased that these folks will have the opportunity to maintain their coverage.”

The extension applies to those who are currently receiving the subsidies and to those who have already exhausted their initial nine months of subsidies business card templates. Unemployed workers who are eligible for the subsidies will be notified by their former employers’ insurance provider.

Workers who dropped COBRA after the subsidies ran out because they could not afford the full premiums re-enroll and receive the extended subsidy. Workers who have been paying the full premium since the subsidies ran out should contact their plan administrator or sponsor about receiving future credits or reimbursements for their past payments.

COBRA allows many workers and their families to continue receiving health insurnace coverage that had been provided through their former employer. However, the worker is responsible for paying up to 102 percent of the total cost of the insurance, much of which may have been paid for by the employer.

Mini-COBRA is provided for workers of companies with fewer than 20 employees.

Individuals with questions about COBRA benefits should contact the N.C. Department of Insurance at (800) 546-5664 or go online to www.dol.gov/cobra.

Source