COBRA status

A USAToday article this morning discussed the – at least at present – demise of COBRA benefits for many people. The longstanding federal law passed in 1985, requires employers to continue insurance for former employees, typically for 18 more months, if they pay the entire premium plus a 2% administrative fee. Last year, Congress approved a 65% COBRA premium subsidy, but that ended May 31 and deficit-conscious lawmakers have not renewed it.

"People who started on COBRA before May 31 can still get the aid," the article says, "but those who had exhausted the 15-month subsidy, and the newly unemployed, aren't eligible." The Dept. of Labor’s website has an online link ( Here ) for "individuals who believe they have been incorrectly denied the subsidy, and may request the Employee Benefits Security Administration to review their denial and issue a determination within 15 business days."

While the Obama administration says it favors extending the subsidy, USAToday says, it "is having trouble winning support among lawmakers of both parties who are worried about the federal deficit and are hard-pressed to find ways to pay for the additional cost…" Trying to address those concerns, Congress had at least 41 bills at least mentioning COBRA this session, the latest being by Sen. Robert Casey, D-Pa., who introduced a bill, last June, to "reinstate the subsidy and make it retroactive to give people laid off since June 1 six months of the subsidy instead of the 15 months that the law had provided. It would be paid for by eliminating a tax break on annuity trusts."