How to Update a Cobra Subsidy Extension

For many people who became jobless between September 1, 2008 and May 31, 2010, the federal subsidy picking up 65 percent of their monthly health insurance premiums makes their health care possible. The American Recovery and Reinvestment Act of 2009 included a provision for a nine-month per person subsidy to those continuing employer-sponsored group health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA). The Department of Defense Appropriations Act signed December 19, 2009 extended the subsidy to 15 months per person.

Instructions

• 1

  Keep careful track of the date you lost your employer-sponsored health insurance. Typically, this occurs on the first day of the month following your separation. For example, if you were let go on December 5, 2009, your employer-sponsored insurance would end December 31st. As of January 1, 2010, your COBRA coverage would have begun if you elected continuation. This is the date relevant to your extension.

• 2

  Contact the human resources department or benefits administrator of your former employer before the nine-month anniversary of your COBRA election date or as closely afterward as possible. Inform the person you speak with that you intend to keep your COBRA extension in effect and want to make sure they will process the federal subsidy for the extended 15-month period. A knowledgeable professional should already be in compliance with the law and have already extended your case to take advantage of the full subsidy period.

• 3

  Follow up with your health insurance carrier to see that they have your premiums scheduled for the discounted, subsidized amount. This will confirm that your former employer did its part.

• 4

  Complain to your state department of insurance if your former employer or designated benefits administrator --- common for companies that have folded --- has not informed your health insurance provider that you are continuing your COBRA coverage with the subsidy in place. The state should step in to resolve any issues on your behalf.