Q&A: Help for small biz workers on COBRA health insurance
NEW YORK -- The good news: The government is offering a big discount on health insurance for laid-off workers.
The bad news: Figuring out whether you're eligible can be confusing, especially if you work for a small business. And there are some tricky deadlines to consider.
Traditionally, most people who leave their jobs can stay on their former employer's health plan through COBRA, or the Consolidated Omnibus Budget Reconciliation Act of 1985. The idea is to give people access to health insurance while they're in between jobs.
The law only applies to people who worked at companies with 20 or more workers, but many states have their own laws to give workers at small businesses limited COBRA coverage as well.
Either way, the cost of COBRA is often prohibitive, since employers no longer pay a portion of your health care premium. But the new government program can help — it covers 65% of the premium cost for COBRA for up to nine months.
The program also offers many workers a second 60-day window to sign up for COBRA if they missed the original deadline to do so. Though people laid off from small businesses might not get a second chance to enroll, depending on the state where they live.
Employers are required to send notices to workers who are eligible for a second chance at COBRA by Saturday, so be sure to check your mail. And once again, the new election period ends 60 days after you're notified.
Here are some questions and answers offering more details about the COBRA subsidy.
Q: I work at a business with fewer than 20 workers. Am I eligible for the COBRA discount?
A: You might be eligible if your state has a "mini-COBRA" law. It works the same way as traditional COBRA, but usually for a shorter period of time.
Some states with mini-COBRA laws recently extended their coverage periods to allow workers to take advantage of the full nine months of subsidies being offered. They are Georgia, Ohio, Utah and Virginia, along with the District of Columbia, according to Families USA, a health care advocacy group.
