COBRA - Your stimulus package

Hey all......... after receiving some grief for my inconsistent blogging schedule I'm back to wow you with my HR prowess. Today we're going to delve into serious HR territory that could have a HUGE impact on you or someone you know.

With all the job loss going on as companies struggle to stay in business and turn a profit, individuals and families are finding themselves in difficult positions when layoffs occur..... should they keep their health insurance benefits through COBRA or let their insurance coverage lapse. Often, the cost of COBRA can be similar to a mortgage payment if covering both a spouse and children and these days, keeping a roof over their family's head is a larger concern to many.

I'm really surprised that this topic didn't get more coverage a few week's back when President Obama signed the economic stimulus package into law. Hidden away in the stimulus package is a provision that cuts the cost of COBRA for employees who have been involuntarily terminated to only 35% of the total premium for up to 9 months. THIS IS HUGE!

Using the coverage premiums from my last company, a family that normally would have had to pay about $900 for total family coverage would now only have to pay $315 per month. An individual plan of around $300 a month would now only have to pay $105. WOW! This is so important, especially for all those folks who have children or a family member engaged in ongoing treatment for a medical condition.

This benefit is immediately available for employees who have lost their jobs and is even available retroactively for individuals that lost their jobs as far back as 9/1/2008. The company has to pay the remainder of the COBRA cost, but they are able to take this expense off of their payroll tax burden that otherwise would be paid to the federal government. What this means is that it is completely invisible to the employee and their is no extra paperwork or hoops to jump through. You still send your check into your former company, it's just a smaller check!

Here is a link to a newsletter I subscribe to that discusses the new regulation in more detail:
http://www.ballardspahr.com/press/article.asp?ID=2385

If you know someone that this applies to, please notify them of their rights. I would be happy to assist in any way I can. Don't wait to see this on the news; they don't focus on GOOD news that people can agree on!

See you soon.

ZW
http://www.azmobilehr.com