Laid-off workers can get much of their healthcare insurance paid for through a new law, reports the Metro Washington Council's Community Services Agency (CSA). "The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 -- commonly called COBRA -- for folks who have lost their health insurance coverage due to lay-off," reports CSA Executive Director Kathleen McKirchy. "Those eligible pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit," adds McKirchy.
This new law will help many people getting laid off who want to keep their health insurance, who would otherwise face paying a substantial monthly amount to keep it. Family health coverage can cost on average about $1,000 a month, according to Families USA, a national nonprofit, and the average monthly COBRA premium for individual coverage is $388.
Under ARRA, eligible furloughed employees from companies with a workforce of 20 or more employees can buy nine months of health coverage from their ex-employer at only 35% of the 102% cost. The premium reduction applies to health coverage beginning on or after February 17, 2009 and lasts for up to nine months for those eligible for COBRA during the period beginning September 1, 2008 and ending December 31, 2009, due to an involuntary termination of employment occurring during that period.
Know your rights: Employers must send a notice (required by law) no later than April 17, 2009, to all laid-off employees who are eligible for this premium reduction coverage. Then there is a 60 day window for workers that are eligible to opt into the program. Click here for details.
This is an edited version of the original report from Union City at www.dclabor.org
