The Recovery Act invested millions in new projects that are improving our infrastructue, repairing homes, and much more. But it also provided millions in direct benefits for families, students, businesses, investors, and more including more than $288 million in various forms of tax relief. Guidance on how to access each of those benefits is below.
Recovery Act Provisions:
- COBRA benefits extended by 15 months for those eligible
- 65-percent subsidy on COBRA premiums
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The COBRA program allows workers who are involuntary terminated to maintain their existing health care coverage at a reduced rate for themselves and their family. Basically, the individual takes over the premium that was previously paid by their employer. Under the Recovery Act, individuals can maintain this arrangement for 15 extra months and the federal government will pick up 65 percent of the cost of coverage. Individuals who lost their jobs between September 1, 2008 and February 28, 2010 are eligible for these new provisions.
To apply for COBRA coverage:
1) Watch for a COBRA election notice
If you are involuntarily terminated, it is your employer’s responsibility to notify your group health plan of this change within 30 days. (If you are losing coverage because of a divorce, it is up to you to notify the health insurance provider.) The provider must then mail a COBRA election notice to you within 14 days of receiving notification. The election notice should contain all of the information you will need to understand continuation coverage and make an informed decision whether or not to elect continuation coverage. It should also give you the name of the plan's COBRA administrator and tell you how to get more information.
2) Fill out and return the required forms
This is the final step, as the 65 percent reduction will be paid by the employer or health provider that handles your COBRA coverage and reimbursed to them as a tax credit. Your COBRA coverage will cost you 35 percent of the premium and will last for up to 15 months beyond the normal term, which was 18 months for most people.
