Continuation Coverage
Assistance Under
The American Recovery And Reinvestment Act
President Obama signed the American Recovery and Reinvestment
Act (ARRA) on February 17, 2009. The law gives "Assistance
Eligible Individuals" the right to pay reduced COBRA premiums for
periods of coverage beginning on or after February 17, 2009 and can
last up to nine months.
To be considered as "Assistance Eligible individual" and get
reduced premiums you:
- MUST be eligible for continuation coverage at any time during
the period from September 1, 2008 through December 31, 2009 and
elect coverage;
- MUST have a continuation coverage election opportunity related
to an involuntary termination of employment that occurred at some
time from September 1, 2008 through December 31, 2009;
- MUST NOT be eligible for Medicare; AND
- MUST NOT be eligible for coverage under any other group health
plan, such as a plan sponsored by a successor employer or a
spouse's employer.
Individuals who experienced a qualifying event as the result of
an involuntary termination of employment at any time from September
1, 2008 through February 16, 2009 and were offered, but did not
elect, continuation coverage OR who elected continuation coverage
and subsequently discontinued it may have the right to an
additional 60-day election period.
IMPORTANT
- If, after you elect COBRA and while you are paying the reduced
premium, you become eligible for other group health plan coverage
or Medicare you MUST notify the plan in writing. If you do
not, you may be subject to a tax penalty.
- Electing the premium reduction disqualifies you for the Health
Coverage Tax Credit. If you are eligible for the Health
Coverage Tax Credit, which could be more valuable that the premium
reduction, you will have received a notification from the IRS.
- The amount of the premium reduction is recaptured for certain
high income individuals. If the amount you earn for the year
is more than $125,000 (or $250,000 for married couples filing joint
federal income tax return) all or part of the premium reduction may
be recaptured by an increase in your income tax liability for the
year. If you think that your income may exceed the amounts
above, you may wish to consider waiving your right to the premium
reduction. For more information, consult your tax preparer or
visit the IRS Web page on ARRA at www.irs.gov.
For general information regarding your plan's COBRA coverage,
the administration of the ARRA Premium Reduction, or to notify the
Plan of your ineligibility to continue paying reduced premiums, you
may contact:
Clayton County Board of
Commissioners
Insurance Benefits Division of Human Resources
134 Spring Street
Jonesboro, Georgia 30236
(770) 477-3590
If you are denied treatment as an "Assistance Eligible
individual' you may have the right to have the denial
reviewed. For more information regarding reviews or for
general information about the ARRA Premium Reduction go to:
http://www.dol.gov/ebsa/cobra.html
or call 1 (866) 444-EBSA (3272)
For More
Information