Workers who have lost their jobs and have their hopes pinned on the Cobra Medical Insurance Package from the relief they are getting out of Stimulus package will heave with a sigh of relief.
The employers who have had to lay off employees now have the model notices available that they can use to inform their former employees about the COBRA medical premium subsidies since from the time the recession began.
In fact according to the law, the Labor Department was mandated with developing the Cobra notice given the recently passed stimulus law. These notices were to be passed on to the employers who could then do the needful.
The release date for the notices was March 19, and this is what the Congress was told.
What the law says on the COBRA is that any involuntary termination of the employee requires the employee to pay only upto 35% of the COBRA premiums every month and the rest of the tab will be picked up by the federal government.
The relief is available only uptil 9 months and this is not a permanent thing. So either you get the new job within that period or you move on to medicare if it is applicable.
I don’t have a copy of the COBRA model notice otherwise I would have posted a sample here with the explaination of what different portions of it means.
Have you had a chance to look at it yet? Give a shout out below.
For more on COBRA issues, check out this article: COBRA Stimulus Package