Does new COBRA rule apply to me?
There are new COBRA rules (part of the Economic Stimulus Act) allowing for a 65% subsidy of a terminated employee's COBRA premium. I am trying to determine of I am eligible for this benefit.
I was involuntarily terminated prior to 9/1/08, but as part of my termination/severance agreement, my former employer continued to pay 100% of my family health care premiums through 9/30/08, at which time I was eligible for COBRA. I declined it because I found less expensive coverage privately.
Am I eligible for this subsidy? Thanks in advance for your answer.
Answers (1)
Your termination was the
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
The basic rule is: employees who had a 'qualifying event' on or after September 1, 2008 may have a second chance to elect COBRA coverage. They must be notified of their new COBRA rights and the new
65% COBRA subsidy by April 18, 2009.
That being said, your termination was the 'qualifying event' triggering COBRA coverage, not the last day of health insurance coverage (extended due to severance). Unfortunately, the extended and subsidized COBRA coverage now available appears to apply to people terminated on or after September 1, 2008.
This does not mean that you should not contact your former employer and ask to be provided the extended coverage COBRA notice; their plan may allow for you to be covered in this circumstance. Whether case law will develop showing extended/subsidized benefits to be available to employees terminated before September 1, 2008, but whose benefits extended past September 1, 2008, remains to be seen.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com
posted by Christopher Ezold | Mar 23, 2009 6:02 PM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
The basic rule is: employees who had a 'qualifying event' on or after September 1, 2008 may have a second chance to elect COBRA coverage. They must be notified of their new COBRA rights and the new
65% COBRA subsidy by April 18, 2009.
That being said, your termination was the 'qualifying event' triggering COBRA coverage, not the last day of health insurance coverage (extended due to severance). Unfortunately, the extended and subsidized COBRA coverage now available appears to apply to people terminated on or after September 1, 2008.
This does not mean that you should not contact your former employer and ask to be provided the extended coverage COBRA notice; their plan may allow for you to be covered in this circumstance. Whether case law will develop showing extended/subsidized benefits to be available to employees terminated before September 1, 2008, but whose benefits extended past September 1, 2008, remains to be seen.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com
posted by Christopher Ezold | Mar 23, 2009 6:02 PM [EST]
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