Last week, Massachusetts enacted a new law that will enable more residents to access the federal subsidy for their COBRA benefits – letting you keep your employer’s health insurance coverage after becoming unemployed.
This “mini-COBRA” law (section 41 of chapter 30 of 2009) implements a benefit offered through ARRA, the economic stimulus bill passed in February by the federal government. ARRA includes several provisions intended to aid the new unemployed in retaining their health care coverage through COBRA. The most significant provision is the 65% reimbursement paid by the federal government for eligible individuals. Certain residents will be able to obtain COBRA coverage even if they did not originally sign up for health insurance when they were laid off. Another provision of ARRA is a second-election period for COBRA for individuals who were laid off prior to February, 2009 and did not elect COBRA at the time of employment termination.
Prior to the passage of last week’s law, individuals covered by our state’s mini-COBRA law (fewer than 20 employees), could not access the second-election period. Now, these residents, who work for smaller employers, are able to take advantage of the second election period to enroll in their former employer’s COBRA health insurance. They may also be eligible for the 65% federal reimbursement. This means that they only have to pay 35% of their premium for 9 months as opposed to 100%. If the laid-off person meets the income qualifications, he or she may also enroll in the Medical Security Plan, which will pay for 80% of the remaining premium. This benefit will not only assist individuals who could not afford to enroll in COBRA when they were first laid-off, but also help those who lost coverage due to non-payment of an expensive premium.
For more information please contact the Health Care For All Helpline at: 1-800-272-4232.
-Georgia J. Maheras
