The Joint Committee on Taxation has published their comments on the proposed “Health Insurance Assistance for the Unemployed Act of 2009”, which passed the House of Representatives. This proposed act includes a government provided COBRA subsidy for the unemployed as well as retroactive extension of eligibility for COBRA. In an effort to relieve the economic strain on individuals as unemployment surges, the proposal addresses a number of issues:
COBRA Premiums: The proposal includes a reduction of COBRA premiums for assistance eligible individuals.
Eligible Coverage: Subsidy qualified coverage is not limited to federal COBRA, but also includes State continuation.
Termination of Eligibility for Reduced Premiums: The proposal includes guidelines for eligibility and termination of eligibility for subsidized COBRA.
Special Election Opportunities: The proposal provides a special 60 day election period for qualified beneficiaries who are eligible for the reduced premium and have not elected COBRA continuation as of the date of enactment.
Reimbursement of Group Plans: The proposal provides that the entity to which COBRA premiums are payable will be reimbursed for the amount of the premium that is not paid by the assistant eligible individual on account of premium reduction.
Notice Requirements: COBRA notices must include the additional information regarding the new provisions under this act.
These proposed regulations must still pass the Senate, and may undergo revisions before being enacted.
To read the full commentary, click here.
