COBRA Subsidy Notice
COBRA Health Insurance Continuation Premium Subsidy
June 15, 2009 | Source: U.S. Department of Labor and Employee Services
Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in 1986. The law provides unemployed workers the opportunity to continue group health coverage that otherwise might be terminated.
The American Recovery and Reinvestment Act, signed into law on February 17, 2009, established an employer-provided COBRA subsidy. Employees who are involuntarily terminated between September 1, 2008 and December 31, 2009 may be eligible for a nine month subsidy of COBRA premiums. The subsidy also applies to any eligible family member of an involuntarily terminated employee. A qualifying individual would pay 35% of the premiums during the subsidy period. The University of Wisconsin will subsidize the remainder, but will receive a tax credit for its 65% share.
Individuals eligible for a COBRA premium reduction for State Group Health Insurance coverage also have the opportunity to have a COBRA subsidy for the following benefit plans: EPIC Dental and Excess Medical Insurance, Anthem Dental Insurance, and OptumHealth Vision Insurance. Individual must have been actively enrolled in these benefit plans in order to have an opportunity to continue coverage.
Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the COBRA premium reduction. There is no premium reduction for COBRA premiums paid for coverage prior to February 17, 2009. The COBRA premium reduction is decreased or eliminated for individuals in certain income categories defined within the law; see the Department of Labor COBRA Premium Reduction Fact Sheet link below for more details.
Any employee who is involuntarily terminated during the effective period will be sent their COBRA continuation notice and subsidy information from the Office of Human Resources, Benefit Services.
If you have additional questions, please e-mail: benefits@ohr.wisc.edu
For further information, please visit the links below:
University of Wisconsin System
General Information | Premium Assistance for COBRA Continuation of Insurance Benefits U.S. Department of Labor
General Information | COBRA Continuation Coverage Assistance Under The American Recovery And Reinvestment Act Of 2009
Fact Sheet | COBRA Premium Reduction | en Español
FAQs | For Employees About COBRA Premium Reduction Under ARRA