Cobra? - Page 2

bmblebee · 04-22-2009, 05:16 PM

Here is the info I was just sent in an update from the IRS about provisions in The ARRA...

Health insurance continuation (COBRA) subsidy. Workers who have lost their jobs may qualify for a 65 percent subsidy from their former employers for COBRA continuation premiums for themselves and their families for up to nine months. Eligible workers will have to pay the remaining 35 percent of the premium to their former employers. To qualify, a worker must have been involuntarily terminated between Sept. 1, 2008, and Dec. 31, 2009, and the former employer must still be in business and offer health benefit coverage.

Workers who lost their jobs between Sept. 1, 2008, and Feb. 16, 2009, but did not initially choose COBRA coverage or initially chose COBRA coverage and dropped it before Feb. 17, 2009, get an additional 60 days to elect COBRA and receive the subsidy.

The subsidy starts to phase out for individual taxpayers with adjusted gross income in excess of $125,000 for individuals or $250,000 for married couples filing jointly.

Eligible workers will have to pay 35 percent of the premium to their former employers.

Employers should use the updated Form 941, Employer's Quarterly Federal Tax Return, to report their COBRA premium assistance payments.

The Form 941 Instructions explain how to complete lines 12a and 12b, which address the COBRA premium assistance payments.

Additional information may be found in Notice 2009-27, Premium Assistance for COBRA Benefits.

I can only help from a tax stand point, but you should contact the US Dept of Labor for more complete information

HurricaneHeather · 04-22-2009, 07:06 PM

Wow...COBRA might actually help people?

I am mildly kidding. I know that if I lost my job right now I'd probably have to use it

04-22-2009, 05:16 PM	#11
bmblebee Community Curmudgeon Join Date: Nov 2008 Location: Tallahassee Moto: '04 F4i Posts: 373	Here is the info I was just sent in an update from the IRS about provisions in The ARRA... Health insurance continuation (COBRA) subsidy. Workers who have lost their jobs may qualify for a 65 percent subsidy from their former employers for COBRA continuation premiums for themselves and their families for up to nine months. Eligible workers will have to pay the remaining 35 percent of the premium to their former employers. To qualify, a worker must have been involuntarily terminated between Sept. 1, 2008, and Dec. 31, 2009, and the former employer must still be in business and offer health benefit coverage. Workers who lost their jobs between Sept. 1, 2008, and Feb. 16, 2009, but did not initially choose COBRA coverage or initially chose COBRA coverage and dropped it before Feb. 17, 2009, get an additional 60 days to elect COBRA and receive the subsidy. The subsidy starts to phase out for individual taxpayers with adjusted gross income in excess of $125,000 for individuals or $250,000 for married couples filing jointly. Eligible workers will have to pay 35 percent of the premium to their former employers. Employers should use the updated Form 941, Employer's Quarterly Federal Tax Return, to report their COBRA premium assistance payments. The Form 941 Instructions explain how to complete lines 12a and 12b, which address the COBRA premium assistance payments. Additional information may be found in Notice 2009-27, Premium Assistance for COBRA Benefits. I can only help from a tax stand point, but you should contact the US Dept of Labor for more complete information __________________ Alcohol, Tobacco and Firearms should be a convenience store and not a government agency If You Don't Know What Your Rights are...You Won't Have Any Last edited by bmblebee; 04-22-2009 at 05:20 PM..

04-22-2009, 07:06 PM	#12
HurricaneHeather AMA Supersport Join Date: Nov 2008 Location: Sydney Moto: '98 Honda Fireblade Posts: 3,696	Wow...COBRA might actually help people? I am mildly kidding. I know that if I lost my job right now I'd probably have to use it