COBRA Frequently Asked Questions-IBU

COBRA Stimulus Subsidy
Frequently Asked Questions (FAQs)

The Economic Stimulus Act was signed by President Obama on February 17, 2009. This act effects COBRA continuation election rights and provides a reduced COBRA premium rate for eligible involuntarily terminated employees.

The American Recovery and Reinvestment Act (ARRA), as amended, gives “Assistance Eligible Individuals” the right to temporarily pay reduced COBRA premiums.For general information about the ARRA Premium Reduction go to: www.dol.gov/COBRA or call 1-866-444-EBSA (3272). As ARRA is amended, this website will be updated, so please visit this site periodically to be sure you have the most up to date information.

Below is a list of frequently asked questions and answers. Please review this information and if you still have questions please contact us at A&I.

I received a new COBRA election notice in the mail, but I think I have active coverage?

Since I received the new COBRA election notice, does that mean I am eligible for the subsidy?

If I believe I am an assistance-eligible individual, and I am denied the subsidy, do I have appeal rights?

I received a new COBRA election notice in the mail, but I think I have active coverage?

The American Recovery and Reinvestment Act of 2009 requires your health plan send you notification of the COBRA stimulus subsidy if at some point you became involuntarily terminated after September 1, 2008.

If you have online access to your account, please click "here" to confirm active coverage.

If you have active coverage, you can disregard the election notice. If you do not have access to online eligibility, or have inactive coverage and still have questions, please feel free to contact A&I Benefit Plan Administrators, Inc..

Since I received the new COBRA election notice, does that mean I am eligible for the subsidy?

Not necessarily. It is important that you read the form that states "Request for Treatment as an Assistance Eligible Employee." Read through the questions, and if you feel you are qualified, fill out the COBRA election form and the "Request for Treatment as an Assistance Eligible Employee" form and return to A&I. A&I will review your request for the subsidy and send you a letter of confirmation or declination. (If you have not received the forms, and you believe you are an assistance-eligible individual, please contact A&I).

If I believe I am an assistance-eligible individual, and I am denied the subsidy, do I have appeal rights?

For more information regarding your appeal rights or for general information about the ARRA Premium Reduction, please visit http://www.dol.gov/ebsa/cobra.html or call 866-444-3272.