Comments on: FAQs

By: basusacobra

basusacobra — Tue, 27 Apr 2010 00:03:58 +0000

Yes, the period of eligibility for newly, involuntarily separated employees extends to May 31, 2010.

The information contained herein is for informational purposes only and is not intended as legal or tax advice, nor is it intended to advise you of your obligations under ERISA, COBRA, HIPAA or the American Recovery and Reinvestment Act of 2009. It should not be used or relied upon as the basis for any action or choosing inaction. Consult an experienced benefits attorney or tax professional about your specific situation before deciding on any course of action or inaction.

By: Salvatore Saladini

Salvatore Saladini — Fri, 23 Apr 2010 03:25:08 +0000

Has the Americn Recovery Act premium discount been temporarily extended to June?

By: robbie lawler

robbie lawler — Sun, 01 Nov 2009 18:23:08 +0000

live in pa (chester county) and my cobra exhausts after 1st of next year, appx feb, mar 2010. i will not quality for indiv insur b/c of pre ex and am wondering if there is a safety net after cobra exhauts or can cobra continue? don’t know what to do i am 55 yrs old and female. thanks for any info. robbie

By: basusacobra

basusacobra — Sun, 01 Mar 2009 17:06:21 +0000

The regulations do not specificy a type of involuntary layoff except that such involuntary separation was not due to “Gross Misconduct.”

By: basusacobra

basusacobra — Sun, 01 Mar 2009 16:30:05 +0000

Thank you for your comments about the quality of our COBRA information. To answer your question, it appears that the revised Form 941 provides in line 15 a place to identify your credit amount and note whether you want to apply the credit to the next return or to have the IRS send you a refund.

Specifically, Form 941 Instructions state on page 6, Item 15 Overpayment: “If line 13 is more than line 10, write the difference in line 15. Never make an entry in both lines 14 and 15.

If you deposited more than the correct amount for the quarter, you can choose to have the IRS either refund the overpayment or apply it to your next return. Check the appropriate box in line 15. If you do not check either box, we will automatically refund the overpayment. We may apply your overpayment to any past due tax account that is shown in our records under your EIN.

If line 15 is under $1, we will send a refund or apply it to your next return only if you ask us in writing to do so.”

By: JD Baker

JD Baker — Sat, 28 Feb 2009 20:54:35 +0000

This is the best information I have found so far on this subject on the internet, thank you for that. My question is, what if the business is no longer paying any payroll taxes at all, as it has laid off all employees (who are eligible for COBRA) and is just down to the principal partners (who are not taking a salary at this point)? Will the IRS refund the 65% that the employer is expected to pay? Can the employer get the money monthly or will it have to wait for the end of the quarter?

Thank you for any input you may have on this issue.

By: Aviva Truesdell

Aviva Truesdell — Sat, 28 Feb 2009 00:31:11 +0000

Does this apply to employees who were involuntary terminated for cause or does it only apply to employees who were layed off?

By: basusacobra

basusacobra — Fri, 27 Feb 2009 21:26:42 +0000

The premium subsidy is only available if the COBRA coverage start date was/is on or after September 1, 2008. Therefore, the premium subsidy would not be applicable in your situation. Please refer to the following text from the Department of Labor:

An assistance eligible individual is a COBRA “qualified beneficiary” who meets all of the following requirements:

- Is eligible for COBRA continuation coverage at any time during the period beginning September 1, 2008 and ending December 31, 2009;

- Elects COBRA coverage (when first offered or during the additional election period), and

- Has a qualifying event for COBRA coverage that is the employee’s involuntary termination during the period beginning September 1, 2008 and ending December 31, 2009.

Those who are eligible for other group health coverage (such as a spouse’s plan) or Medicare are not eligible for the premium reduction. Other limitations may also apply. There is no premium reduction for periods of coverage that began prior to February 17, 2009.

By: M. A. Foster

M. A. Foster — Fri, 27 Feb 2009 21:19:05 +0000

My job was eliminated and I have been a COBRA participant since June 2008. I intend to continue the coverage through the entire 18 month entitlement period.
Am I eligible for the 65% rate reduction for the period of March 2009 through Novemeber 2009, even though I started COBRA coverage prior to September 2008.
I assume that the rate reduction covers me as an active participant. Is that correct?
Thank you for your assistance.

By: Jim

Jim — Wed, 25 Feb 2009 19:49:03 +0000

Thanks, so since the cobra qualifying event took place 11/01/08 (insurance ended 10/31/08) then I would qualify? Please confirm. (FYI…stopped working on 4/18/08 and severance was for 6 months- ended in 10/2008- which is when I started unemployment)..Jim