My client employs 14-15 people (so isn't covered by the COBRA rules). They have laid several employees off for the summer. They are allowing the employee to continue coverage. Are they eligible for the COBRA premium assistance? So the employee would only need to reimburse my client 35%?
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The Premium Assistance For COBRA Benefits is Section 3001 of the American Recovery and Reinvestment Act of 2009.
The law says:
The point being, Premium Assistance For COBRA Benefits is for assistance eligible individuals. If the person is not eligible for COBRA benefits (because the employer is not covered under COBRA), then the person cannot receive Premium Assistance For COBRA.(3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For purposes of this
section, the term ‘‘assistance eligible individual’’ means any
qualified beneficiary if—
(A) at any time during the period that begins with
September 1, 2008, and ends with December 31, 2009,
such qualified beneficiary is eligible for COBRA continuation
coverage,
(B) such qualified beneficiary elects such coverage, and
(C) the qualifying event with respect to the COBRA
continuation coverage consists of the involuntary termination
of the covered employee’s employment and occurred
during such period.
The fact that the employer decides to continue to cover employees on his or her own does not make it COBRA continuation coverage. -
Oregon has a state continuation plan
Which qualifies for the federal assistance.Comment
Comment