A New Day for HealthCare: The Affordable Care Act

Since its passage a few years ago, Republicans and others have sought to demonize the Affordable Care Act, while conversely those supporting the Act have done a poor job of providing accurate information about the Act.  I have found this political contest a quagmire of misinformation.

Like most ground breaking legislation, the Act is not without its flaws, and over time hopefully legislators will set aside politics and take steps to improve the legislation as needed.  As we experience the implementation of the statute, we will doubtless find new issues to be addressed.  However, given the fact that we pay more for healthcare in the United States and get less satisfactory results than many other industrialized nations, the fact that millions of American until this time have been without healthcare, while those of us with coverage have paid higher premiums to subsidize many of them, and a number of other factors, the fact we have at last done something is encouraging.

So here I begin a series of posts on the Affordable Health Care Act trying to provide information regarding new regulations and most importantly how the Act will affect employers and employees.

ARRA Cobra Subsidy Extended

Persons who lost their jobs during the period September 15, 2008 and December 31, 2009 have received a welcome holiday gift. Under the American Recovery and Reinvestment Act of 2009, employees who were involuntarily terminated from their jobs were entitled to a 65% federal subsidy for their COBRA premiums. The subsidy, however, was to last only nine months, i.e., through December 31, 2009.

The 2010 Defense Appropriations Act, however, has extended the period of the subsidy to 15 months, meaning that those who began receiving the subsidy earlier in 2008 may receive the subsidy for up to 15 months.

In addition, the deadline for eligibility has been extended to February 28, 2009. Anyone who is involuntarily terminated for reasons other than gross miscondcut between now and February 28, 2009, if eligible for COBRA will be eligible for the subsidy.

Published in: on December 28, 2009 at 12:46 am  Leave a Comment