December 10, 2009
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act. This legislation provided COBRA premium assistance to help those who lost their jobs by offsetting the costs of continuing health insurance. The premium assistance program will continue for nine months from the March 1st passage date through December 31st of this year. Individuals who are eligible for COBRA during this time period will receive nine months of assistance upon applying for their benefits, even if it extends beyond the end of the year.
Individuals who have been involuntary terminated are eligible for nine months of COBRA premium assistance as long as they have applied for their COBRA benefits by December 31st of this year. Individuals currently receiving COBRA benefits at a reduced rate because of the assistance will continue to receive the assistance for the duration of the statutorily granted nine month period. The premium assistance program also applies to state continuation coverage, also known as mini-COBRA.
Any individuals who have questions regarding the process for receiving COBRA benefits should contact their employer. Consumers should also be aware that the rules for applying for COBRA and mini-COBRA are not identical. Thus, individuals should confirm what type of COBRA they are eligible for before applying. If you have any questions, you should contact the Division of Consumer Services at the number below.
Also, if you are about to lose the premium assistance, do not cancel your COBRA coverage instead shop around for an individual policy with the benefit level you want and a premium you can afford. Watch for Congressional changes and if you have any questions, contact the Division of Consumer Services at 1-877-693-5236, or http://www.myfloridacfo.com/Consumers/.
The Insurance Consumer Advocate is appointed by Florida Chief Financial Officer Alex Sink and is committed to finding solutions to insurance issues facing Floridians, calling attention to questionable insurance practices, promoting a viable insurance market responsive to the needs of Florida’s diverse population and assuring that rates are fair and justified.