New Law Will Reduce COBRA Premiums for Some

One of the provisions of the American Recovery and Reinvestment Act of 2009 (ARRA) signed into law in February by President Obama is relief on COBRA premiums for workers who lost employer-provided health coverage due to "involuntary termination" on or after Sept. 1, 2008 through March 31, 2010. Those people may purchase insurance coverage at only 35% of the usual COBRA rates, for up to fifteen months.

COBRA is the law since 1986 that allows persons who lose their employer-provided health coverage to buy the same coverage at cost, plus 2%.

For those who may have decided that the standard COBRA rates were unaffordable, the law also mandates a "look-back" to Sept. 1, 2008, and offers them another opportunity to enroll.

A major shortcoming of the legislation as it affects CUNY employees is a prohibition against extending the COBRA premium reduction to those who lose their health insurance due to reduction of hours. This excludes many if not most adjuncts who lose their insurance for a term or more when a class is not offered and their hours drop below the required number.

The Process

The New York City Health Benefits Program—with CUNY following their lead—recently sent a mailing to all individuals whom they determined to be affected by the new law. The mailing included a letter, a summary of the relevant provisions and an application that must be certified by the former employer to the effect that the applicant is "Assistance Eligible." This means that the college Human Resources or Payroll Department must verify the date and nature of the job termination. The letter from CUNY also referred to the PSC-CUNY Welfare Fund, which will enroll eligible members once the appropriate conditions of termination are established.

The PSC-CUNY Welfare Fund is separately sending notice to all adjuncts whose loss of employment may qualify as "involuntary termination" if their hours dropped to zero and they received a notice of non-reappointment.

Detailed information on the reduced COBRA premiums for eligible individuals, as well as application materials, have been posted on the New York City Department of Labor Relations website here. Scroll down to page 8 for info on ARRA-subsidized COBRA coverage for basic health insurance.

Welfare Fund Supplemental Benefits COBRA coverage is also available at reduced rates for eligible individuals. Description of Benefits and COBRA Applications are online here.

Recent changes in federal and state laws have increased dependents' opportunity for temporary extension of benefits.
More here.

Qualified individuals will be notified by campus benefits offices appropriately. If you feel that you are qualified but do not receive notice by April 30, please contact the Fund office.

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