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Important Information for Laid Off Steelworkers:
Key Changes
Make COBRA Health Care Continuation
More Accessible
Healthcare is
a critical issue for anyone in a job loss situation, and finding
affordable coverage is often incredibly difficult. Federal law
allows workers who experience certain types of job loss –
including a layoff – the right to continue an employer’s group
health benefits under a program called COBRA. Individuals
normally have to pick up the cost of the entire premium. For
this reason, COBRA is often out-of-reach for people getting by
on an unemployment check. A new change in the law is making
COBRA more accessible.
Key Change
in Recently-Passed Economic Recovery Act Makes COBRA More
Affordable
The federal
government will pay 65 percent of COBRA premiums for individuals
(and their eligible dependents) who (1) are eligible due to an
involuntary job loss occurring between September 1, 2008 and
December 31, 2009, and (2) make less than $125,000 a year. Those
who elect COBRA must pay the remaining 35 percent (the employer
collects) and include the value of the 65 percent subsidy in
their taxable income. The subsidy will last nine months, ending
sooner if the individual becomes eligible under another group
plan or Medicare.
How Do
Individuals Take Advantage of the Subsidy?
Employers
must notify eligible individuals who lose or lost their jobs
between September 1, 2008 and December 31, 2009 of the new COBRA
information and provide eligibility forms. Notices should be
sent out before mid-April. Individuals who did not elect COBRA
coverage when they first lost their jobs or who stopped making
premium payments and lost coverage will be given another 60-day
period to elect COBRA after the notice arrives.
Are There
Any Special Circumstances?
Yes. For
instance, if an employer went out of business and terminated the
health care plan, leaving employees ineligible for COBRA, those
individuals still would not be eligible. Or, if a laid-off
individual’s spouse has family coverage, the individual could
still elect COBRA, but would not be eligible for the subsidy.
For more information on these circumstances and other details on
the subsidy, please see the “COBRA Subsidy Info” section on the
Make Our Future Work site at
www.makeourfuturework.org.
Other
Resources Available for Laid Off Workers
For an
updated version of the Resource Guide for Laid Off Steelworkers
click
HERE or visit the Make Our Future Work site at
www.makeourfuturework.org.
UNITED
STEELWORKERS