Cobra Update
Author: Charles Mayfield
Author: Charles Mayfield
Share: The American Recovery and Reinvestment Act was amended on December 19th, 2009 (ARRA). The ARRA has a provision that allows for the reimbursement of 65% of the premiums due to involuntarily terminated employees seeking to extend their health coverage under Cobra. Prior eligibility requirements allowed for this reimbursement if you were terminated between September 1st, 2008 and January 1st, 2010. This eligibility period has been extended through to February 28th, 2010. Additionally, the reimbursement period has been extended from 9 to up to 15 months. If you are currently participating in the Cobra Subsidy program, this is a tremendous change for you. There are an additional 6 months worth of reimbursements that you are eligible for. Please be sure and know your options for Cobra Continuation in the event you are involuntarily terminated. Some things to consider when looking into Cobra: 1. You have a 60 day grace period to elect to continue coverage a. If you elect, you will owe the premiums back to your termination date 2. You don't have to take Cobra...weigh your options a. If you're not happy with your current plan...see #3. 3. Explore alternatives. You have a 60-Day grace period to shop coverage. a. Be sure to consider if you're eligibility for the ARRA reimbursement. The 65% savings could make the Cobra Continuation a much more attractive alternative. b. Georgia is a "non-guarantee" issue state, meaning the insurance company doesn't have to approve you for health insurance if you aren't healthy. 4. You can only extend Cobra for 18 months. a. There are special provisions that may allow for you to extend your coverage for up to 36 total months. 5. Call a knowledgeable Advisor a. There are dozens of plan options out there. b. You will need to consider deductibles, co-pays, etc. Hopefully this post doesn't apply to you. However, if you or someone you know has recently lost their job, there is much to consider. Don't make an uninformed decision or wait too long to act.About the Author:
As a co-founder of Chappell, Mayfield & Associates, Charles assists countless individuals and businesses in achieving financial independence with appropriate insurance and financial products.
Charles launched his financial planning career as an agent at Prudential Financial in 1997, where he was a three-time Million Dollar Round Table member and a nominee to the first Prudential Field Advisory Council.
Charles holds the CFP designation, as well as the CLU and CLTC designations. He has a B.S. in Management from Georgia Tech.
Just as Charles is committed to his clients' financial well-being, he also takes an avid interest in benefiting his community. He is Past President and current member of the Board of Directors of Jerusalem House, on the Board of Councilors at The Carter Center, and a member of the Peachtree Road United Methodist Church. At Prudential Financial, he served as chair of the Prudential Connection Atlanta Outreach Program.
Charles has lived in Atlanta since 1992 and has a son Dylan. More of his blogs can be found at www.atlantaplanningguys.com