| April 2, 2009, Subsidy May Reduce Health Insurance Cost By 65% |
| Friday, April 3, 2009 9:35:13 AM - Middletown Ohio |
Ohio.gov Press Release
Columbus, Ohio – Ohioans employed by a company with fewer than 20 employees who have lost their job could now secure a federal subsidy up to nine months that may reduce by 65% the cost of their state continuation health coverage, often referred to as mini-COBRA, Insurance Director Mary Jo Hudson said.
The Ohio Legislature inserted an emergency amendment into House Bill 2, the state's transportation-stimulus bill that passed and was signed by Governor Ted Strickland on April 1, immediately extending the timeframe eligible Ohioans can secure mini-COBRA continuation health coverage from six to 12 months, thus also extending eligibility for the federal subsidy from six to nine months.
"The expansion of state continuation coverage has made the 65% federal stimulus COBRA premium assistance available to more Ohioans," Director Hudson said. "I encourage those who have lost their job and have questions about continuation health coverage to contact the Ohio Department of Insurance at 1-800-686-1526 and to also visit our on-line toolkit at www.insurance.ohio.gov for information."
The length of time an Ohioan may be able to secure the mini-COBRA continuation subsidy will depend on when their former employer renews its employer health coverage, which is usually done annually with insurers.
On February 17, 2009, President Barack Obama signed the American Recovery and Reinvestment Act, commonly called the Stimulus Plan. The new law provided the subsidy that may reduce the cost of COBRA health insurance, which applies to companies with 20 or more employees, for nine months for workers who lose their jobs. It initially only applied to Ohio's mini-COBRA coverage for six months because of the old law.
In order to be eligible under the new state continuation law, an employee must have been: (1) continuously insured under a group policy during the three-month period preceding the termination of employment; (2) involuntarily terminated, but not for gross misconduct; (3) not covered or eligible for coverage under Medicare; or (4) not covered or eligible for coverage under other group coverage.
Under federal law, the subsidy ends when a person is no longer eligible for continuation coverage or when the individual becomes eligible for other group insurance or Medicare (whichever comes first).
Ohio insurance consumers with questions and concerns about their insurance can call the Department's consumer hotline at 1-800-686-1526. Free information can also be obtained at www.insurance.ohio.gov.
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