COBRA Subsidy
TAMPA, Fla. (May 7, 2009) -- On Feb. 17, 2009, the federal government passed the American Recovery and Reinvestment Act. The Act provides for a subsidy for certain COBRA beneficiaries. The subsidy is up to 65 percent of the COBRA continuation coverage premium for eligible individuals for up to nine months. The former employee is responsible for at least 35 percent of the premium and will be considered paid in full when this is provided. The university will be responsible for the remaining premium amount and will seek reimbursement from the federal government.
Any individual who has a COBRA qualifying event between the dates of Sept. 1, 2008 and Dec. 31, 2009 will receive a COBRA notice that explains their COBRA continuation rights and an application for the subsidy. Per federal guidelines, the notice and application must be sent to all COBRA eligible individuals, even if they do not qualify for the subsidy.
Individuals who had a COBRA qualifying event between Sept. 1, 2008 and Feb. 16, 2009 may be entitled to a second enrollment period if they were involuntarily terminated and either waived their COBRA continuation option or enrolled but subsequently cancelled. Per federal guidelines, second election period notice will be sent to all individuals who became eligible for COBRA in this time period, even if they do not qualify for the subsidy. These COBRA notices were sent by People First before April 18. For more information, contact a benefits representative at (813) 974-2970.
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