However, hopefully you can reduce the grey or muddy areas. For more guidance on simplifying the complexity of benefits for maximum savings and peace of mind, subscribe to the Benefit Resource Blog today.
Simplifying the complexity of benefits for maximum savings and peace of mind. We would love to chat with you about your current benefits offerings and best practices that may save you and your employees even more. Search through our interactive database of videos, flyers, tutorials, and other tools to help maximize your BRI experience. BRI combines expertise and excellence to provide premier ongoing support to employers and participants, backed by experts and technology you can trust.
We offer growth opportunities and competitive benefits. Join a great place to work! Upon choosing COBRA, you can change your plan during the employer's annual open enrollment period and opt for a less expensive plan like a preferred provider organization PPO , or health maintenance organization HMO. Tax deductions might also help reduce the burden of higher premiums. While filing the annual tax returns, you are allowed to deduct COBRA premiums and other medical expenses exceeding 7.
You can achieve additional savings by reducing other healthcare expenses, such as switching to generic drugs or buying larger supplies at a discount , and visiting a low-cost community or retail clinic for basic healthcare services. Finally, you can utilize the funds of your health savings account HSA to pay COBRA premiums as well as medical expenses, which could significantly reduce the sting of losing your health insurance benefits.
It's important to note that making timely payments on COBRA premiums is essential to maintaining coverage for the duration of your eligibility.
Payment is typically designed to cover a period that is retroactive, going back to the date of the loss of coverage and the qualifying event that established eligibility. If you do not make your COBRA payments on time but you do within the grace period for that period of coverage, there is the possibility that your coverage will be canceled until payment is received, at which point coverage will be reinstated. You can use your health savings account HSA to pay COBRA premiums as well as medical expenses, which could significantly reduce the sting of losing benefits.
Currently, the Departments of Labor and Treasury maintain jurisdiction over private-sector group health plans, while the Department of Health and Human Services is responsible for public-sector health plans.
However, these agencies are not necessarily heavily involved in the process of applying for COBRA coverage or related aspects of the continued coverage program. This coverage ended Dec. Employers recoup the premiums through Medicare tax credits. You are eligible for the COBRA premium subsidy if you lost coverage due to a reduction in hours or involuntary termination of employment.
If, however, you are eligible for other group health plan coverage or Medicare, you will lose eligibility for the COBRA subsidy. You are required to self-report your eligibility for other coverage to the COBRA plan and will face a tax penalty if you do not.
In order to begin COBRA coverage, an individual must confirm that they are eligible for assistance according to the requirements listed above. Typically, an eligible individual will receive a letter from either an employer or a health insurer outlining COBRA benefits. Some individuals find this notification difficult to understand because it includes a large amount of required legal information and language. If you have any difficulty determining whether you are eligible for COBRA or how to begin coverage through this program, contact either the insurer or your former employer's HR department.
For individuals either not eligible for COBRA or those searching for alternatives, there are other options, such as a spouse's health insurance plan. For individuals either not eligible for COBRA or those searching for alternatives, there are other options. In some cases, a spouse's health insurance plan may be a possibility. Or you might explore your options on the federal health insurance marketplace or a state insurance marketplace.
Loss of a job will open up a special enrollment period. As indicated above, Medicaid programs and other short-term policies designed for those experiencing a gap in health coverage may also be available to you. Health insurance professionals typically discourage individuals from electing to go uninsured entirely , as the possibility of severe downsides is high—especially during an uncertain time.
Fortunately, individuals eligible for COBRA coverage have at least 60 days to elect to participate in the program. COBRA is a convenient option for retaining health insurance if you lose your employer-sponsored benefits, and sometimes it is also the best option. However, the cost is often high and the plan is not always the best one to fit an individual's or a family's needs.
Employee Benefits Security Administration. The Commonwealth of Massachusetts. Department of Labor. Accessed May 10, Internal Revenue Service. OK Join. An error has occurred. From Email. To Email. Send Cancel Close. Post a Job See All Jobs. HR Daily Newsletter News, trends and analysis, as well as breaking news alerts, to help HR professionals do their jobs better each business day.
Contact Us The first is when a qualified beneficiary is disabled; the second is when a second qualifying event occurs. If any one of the qualified beneficiaries in your family is disabled and meets certain requirements, all of the qualified beneficiaries receiving continuation coverage due to a single qualifying event are entitled to an month extension of the maximum period of continuation coverage for a total maximum period of 29 months of continuation coverage.
The plan can charge qualified beneficiaries an increased premium, up to percent of the cost of coverage, during the month disability extension. The plan can set a time limit for providing this notice of disability, but the time limit cannot be shorter than 60 days, starting from the latest of:.
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