How can you keep your insurance after you have been laid off from you job?
January 1st, 2011 | 
Author: Question by Secret: How can you keep your insurance after you have been laid off from you job?
A friend was laid off from his job on 7/31/2009, he is allowed to keep his insurance for 6 months at the price of $ 170 a month. How can he keep his insurance longer without having to pay the full premium of $ 700 a month. I read somewhere that you can get that price reduced to 30% to 35% with the COBRA Act. If so how do you do so?
Best answer:
Answer by Mike
He was paying $ 170 per month because of the stimulus package that paid 65% of the cost of Cobra for 9 months or December 1st which ever occurs earlier. After the 9 months or December 1st, there is no longer any subsidy but a bill has been introduced in the senate to extend the the subsidy.
http://www.kaiserhealthnews.org/Daily-Reports/2009/November/06/Cobra-extension.aspx
http://www.bloomberg.com/apps/news?pid=20603037&sid=agHpRnhTW6Zo
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He’s allowed to keep his insurance under COBRA, for 18 months, and even longer under certain circumstances.
But under the Obama stimulus package, the first six months, the federal government will pay 2/3 of the premium, and he pays 1/3 of the premium. After the six months, he pays 100%.
Unless Obama extends the COBRA supplements, they aren’t going to be extended.
No, these answers might not be accurate.
First off, how many employees does the company current employee? If the company employees less then 20 employees for less the 50% of the previous calender year then he will not be eligible for FEDERAL COBRA, he would fall under his states Mini-Cobra.
If he would fall under COBRA benefit, he will be able to maintain his insurance for 18 with the payments of his monthly premiums. However, he will under no circumstances be able to only pay a reduced amount unless the previous employer opts to pay for his part. The previous employer does not need to pay for his premium; by law if your friend wants to keep his coverage HE would have to pay 100% percent of his premium. He could actually be subject to paying an extra 2% in fees for the cost of administration of the COBRA.
He he were to fall under MINI-COBRA then his benefits would vary from State to State.
Your friend is in a very difficult position. Please give him my email and have him email me. Jonathan_Baluja@balujainsurance.com. I am an insurance agent, who deals soley with group insurance.