Editor’s Preface: The new American Recovery and Reinvestment Act (ARRA) is a revolutionary step in addressing our most vital economic challenges. A significant portion of the money doled out by the ARRA ($59 billion) will go towards immediately addressing the health crisis. This is the second part in a two-part series on subsidies for COBRA in the ARRA. We have also extensively covered this subject in “COBRA Health Coverage in a Bad Economy” and “Stimulus Package and COBRA Health Coverage.” You can find Part 1 of this series at: “COBRA Health Subsidies and the Economic Recovery Act“

COBRA Subsidies and Your Health Insurance

Knowing who is and isn’t qualified for this 65% COBRA subsidy coverage can get a little sticky. The ARRA only provides the subsidy to AEI, or “assistance eligible individuals.” Who qualifies as one of these special AEI’s? Anyone who is eligible for COBRA coverage on or before September 1, 2008 or on or after December 31, 2009. This is an interesting way of looking at things, because wouldn’t it just be simpler to say anyone on or after September 1, since December 31 falls after that date? Moving on. An AEI is also someone who chooses to use COBRA during the original COBRA period, or during a special period of coverage. Just what is a special period of coverage? This special election period begins on the date of enactment of the ARRA and ends 60 days after the person’s health plan administrator provides the required notice to the individual. You also have to be covered by COBRA via an involuntary termination (covered in my last post) by your former employer’s health insurance coverage plan.

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Editor’s Preface: The new American Recovery and Reinvestment Act (ARRA) is a revolutionary step in addressing our most vital economic challenges. A significant portion of the money doled out by the ARRA ($59 billion) will go towards immediately addressing the health crisis. This two-part series by Tara Barnes will delve into the benefits of the stimulus package’s COBRA subsidy. We have also extensively covered this subject in “COBRA Health Coverage in a Bad Economy” and “Stimulus Package and COBRA Health Coverage.”

It cannot be denied-COBRA is a huge topic in the United States right now. People are up in arms about COBRA coverage (as can be seen from response here on previous blog postings) and some significant changes and new legislation put into place by the Obama administration may change the face of COBRA.

Spending in the ARRA for Health Insurance and Care Compared with Other Sectors

The ARRA (the American Recovery and Reinvestment Act) was signed on February 17, 2009 and directly affects the COBRA continuation coverage rules. Because so many Americans are upset with the way COBRA coverage works, will these changes benefit or hurt those who need to rely on COBRA to keep their health insurance? Are these new changes really going to make a difference in the things that citizens are frustrating about, like the monthly cost of COBRA? Read on to find out about the new act passed and how it will affect COBRA for those people living in the real world.
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