Obamas COBRA Subsidy

[TXINSURANCE]

Does anyone know specifically how Obamas socialized COBRA system will work?

Specifically...

-I heard this will be RETRO to 9/1/08? What if someone previously declined COBRA and went to a more affordable individual plan - now they can take COBRA retro 9/1/08 with the government subsidizing 65%?

-Are there any income provisions? Or are we subsidizing anyone including those who can qualify and afford individual insurance?

-Is this specific to lay off only I assume this would not factor into those who quit or get fired?

-When does this expire?

This is truly a sad day for America - that we are borrowing billions to subsidize coverage for many who can afford and qualify in the private market.

We are already seeing IFP cancellations and receiving a lot of calls about this new socialized health care option which no one seems to know the specifics on how it works or who is eligible.

My fear in addition to debt and socialized medicine is this will really deteriorate group coverage. If someone takes a new job with benefits they might DECLINE the new group since the gov't is nice to subsidize their COBRA (or is this not an option?).

I feel the squeeze already, truly sad.

I would like to keep this thread to the specifics of the legislation other than a few jabs here and there - I don't want this to turn into an Al vs. the Forum rant if possible.


Thanks for everyones help.

 

[Winter_123]

Does anyone know specifically how Obamas socialized COBRA system will work?

Thanks for everyones help.

Refer to the thread I posted earlier today entitled Obama health care - continued wherein I linked an article that said that basically we don't know.

 

[TXINSURANCE]

I will check out the thread.

If anyone has any answers please chime in.

 

[CHUMPS FROM OXFORD]

I have lost two policies in the last week. Both applied, but now want to go the Cobra route. But both have not had a firm commitment from their former employer yet. It seems the employer is still waiting to hear more details on how and when they will get reimbursed.

Of course...if these people take the Cobra, and have a major health problem before the end of the year...well...

 

[TXINSURANCE]

In Ohio they are basically subsidizing the whole state since virtually everyone is laid off.

It amazes me there is no income requirements or hoops to jump through? I pray they put a provision where if you are offered new group benefits you can not keep the subsidized COBRA, although how you would enforce that is beyond me.

Complete irresponsible use of tax pay dollars.

 

[Googly Moogly]

Hopefully there will be a needs test.

Obama is big on Accountablity...right?

 

[Guest]

I don't believe this plan was well thought-out. I'm afraid it might drive a number of companies out employer-paid health care. They have to pay 65% UP FRONT for COBRA for past employees (Sept. 1?) The can't borrow the money in the current credit climate. The government will reimburse... but when?

If a company drops the plan... there is no COBRA. (Same as if they go out of biz.)

If they change plans COBRA members get to be on the new one.

Here is the question. How long is the "interval" between when a company drops a plan until it decides to take a new one such that the past COBRA members would not be eligible? Is there one? Could a company drop their plan on April 1st and start a new one on Sept. 1 and perhaps get out of paying COBRA.

The 65% rule will go for nine months. Maybe some companies will drop their plan for that long?

You can bet there are conversations like this going on in board rooms all over the country.

[Before you right-wingers turn this thread into yet another political diatribe, can you first address the issue above?]

 

[Winter_123]

I[Before you right-wingers turn this thread into yet another political diatribe, can you first address the issue above?]

Why don't you address it. Whenever we talk about obamacare you have an answer as to how your left wing messiah has health care all figured out and the rest of us are too dumb to see it, unlike you. So you tell us. Most likely it is a mess.

 

[Guest]

Why don't you address it. Whenever we talk about obamacare you have an answer as to how your left wing messiah has health care all figured out and the rest of us are too dumb to see it, unlike you. So you tell us. Most likely it is a mess.

Winter, you are just evil. No other way to explain it.

Move to Canada.

 

[TXINSURANCE]

Al - appreciate the good comments.

While we can all agree to disagree (at times), one thing most will agree is not much lately at the Federal level is well thought out.

I heard 4 to 6 weeks to get the money but I am confused on the process. I assume the company has to get the money back from the government - I don't think this involves much action at all on the former employees part.

I am also concerned if someone quits or is fired or laid off - I guess it doesn't matter? I thought originally this was focused on large lay offs?