New Cobra Vs New Group - Oops

[Franz Kafka]

I think the example on there is for someone who is receiving a severance package with some "consideration". Employers are not currently required to fund any portion of the COBRA premium (at least until this 65% rule kicks in). Sometimes, employers will help out an employee with a severance package related to time of service. Say, one month of COBRA for every 2 years employment, something like that.

From what is posted there, it sounds like that is about how it would work under that special circumstance. Most often, severance packages include much higher funding for the period of COBRA covered under the package. ExampleL 6 months COBRA employer paid then you are on your own for the next 12 months after that.

Thank you. So much to learn.

 

[somarco]

65% is not a huge concern as most employers are paying at least 50% contribution anyway

Maybe so in CA, but not so much here in Georgia.

Small employers pay 50-80% of the employee cost and little or nothing on dependent premiums. So if the ee only premium is $300 and the family premium is $1000 then the er contribution goes from $150 to $650.

And can continue for up to 9 months after the employee is RIF'ed.

I can't find it now, but seems like COBRA affects employers with 20+ employees regardless of how many are on the plan. And I think COBRA applies if you ever hit 20 employees during the current calendar year.

But since I can't find it, I could be mistaken.

 

[Dave020]

I did not realize that it covers dependent costs as well. That does make a huge difference. Same in CA, employers range from $0 dependents to 100% employee and dependents, although I am seeing more and more reduction in the dependent funding.

COBRA (federal) applies to any company which had at least 20 full-time employees (part-timers count fractionally) for at least half of the previous calendar year, regardless of how many were actually enrolled in the health plan.

 

[somarco]

Haven't seen the law, only summaries & opinions. Haven't seen any that differentiate the employer responsibility so I am assuming it applies to the full (102%) COBRA premium.

If so, then whatever COBRA is, the employer is stuck with.

Some say it MIGHT include HRA & HSA contributions as well.

Having fun?

 

[insurance0707]

I'm getting phone calls from Delphi retiree's. Delphi is dropping them. I have a person that called. They're dropping his wife who's 61, they are offering her Cobra that runs $666 a month. Do you guys think she'd be a candidate for the new Cobra?

 

[Delta76]

Groups under 20 full-time employees are EXEMPT from federal COBRA and may fall under state mini-COBRA programs depending on state. I see not provision in this legislation that requires any state to mandate 65% payment by employers in the 2-19 (or 10-19 in Ohio, what's up with that, Chumps?) group size.

Now I'm confused, is that definitive. I've been told otherwise by two sources and heard what's quoted above from others. Then my COBRA administrator sends me an email quoted below about how the subsidy will work:

For insured plans not subject to federal COBRA, where the insurer is collecting the premium, the insurance company will be entitled to the reimbursement through a corresponding credit to its own payroll taxes.

I can't figure out definetively which it is?

 

[djs]

For insured plans not subject to federal COBRA, where the insurer is collecting the premium, the insurance company will be entitled to the reimbursement through a corresponding credit to its own payroll taxes.

This is a twist... It appears the carrier can provide the cobra coverage directly??? Okay, only if the company isn't, and isn't required to (i.e., not on Federal Cobra).


Dan

 

[Dave020]

Now I'm confused, is that definitive. I've been told otherwise by two sources and heard what's quoted above from others. Then my COBRA administrator sends me an email quoted below about how the subsidy will work:

Yes, it has always been the law. Employers with less than 20 full time employees (2-19) are exempt from federal COBRA unless they had 20 or more employees at least half of the previous calendar year. Part-time employees count fractionally towards that number.

For insured plans not subject to federal COBRA, where the insurer is collecting the premium, the insurance company will be entitled to the reimbursement through a corresponding credit to its own payroll taxes.

I can't figure out definetively which it is?

This would, I guess, be state mini-COBRA. Is that saying that the health insurer would have to discount the mini-COBRA premium by the 65% and then take an internal write off? I don't know how they can enforce that one, as it is a state mandate, not federal.
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This is a twist... It appears the carrier can provide the cobra coverage directly??? Okay, only if the company isn't, and isn't required to (i.e., not on Federal Cobra).


Dan

In CA, Cal-COBRA is always provided directly with the carrier, 110% cost which is a bit more than the 102% federal COBRA level. I would assume most other states with mini-COBRA programs operate similarly. This includes the extension to 36 months under AB 1401 for Cal-COBRA. In many cases 1st 18 months are federal COBRA, 2nd 18 months on Cal-COBRA (if the group is a federal COBRA sized group).

 

[NewHealthStrategies]

Hey guys... follow Somarco's posts as he usually has the best interpretation on things....

Go here and you can sign-up to be notified as rules change or in this case, when rules actually are written.....


COBRA Continuation Coverage Assistance Under The American Recovery And Reinvestment Act Of 2009

 

[djs]

Hah, I tried to read the bill. What I learned (and all I learned) was if you want to extend your benefits, get a divorce that is finalized just prior to expiration of benefits. You'll get another 24 months.....

The bills wording:

''(B) D

IVORCE.—In the case of the finalization of a

divorce between an eligible individual and such individual's
spouse, such spouse shall be treated as an eligible individual
for purposes of this section and section 7527 for
a period of 24 months beginning with the date of such
finalization, except that the only qualifying family members
who may be taken into account with respect to such spouse
are those individuals who were qualifying family members​

immediately before such finalization.
​

A simple left field item from the bill.

Dan
​