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Q:  Can someone please contact me regarding my coverage. I was told I was denied due to my company saying I resigned; this is an untrue statement, as they were days away from firing me and in order to continue working in securities, I cannot have a "termination" on my public record or U4 (Securities License) so I sent in a letter of resignation before they put the termination paperwork on record. I need you to contact my previous supervisor and boss, who were also fired.

A:  The American Recovery and Reinvestment Act of 2009 (also know as the federal stimulus package) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months.

The premium reduction for COBRA continuation coverage is available to "assistance eligible individuals".

An "assistance eligible individual" is the employee or a member of his/her family who:

·         is eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009;

·         elects COBRA coverage; and

·         is eligible for COBRA as a result of the employee's involuntary termination between September 1, 2008 and December 31, 2009.

Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction. There is no premium reduction for premiums paid for periods of coverage prior to February 17, 2009.

If an individual’s modified adjusted gross income for the tax year in which the premium assistance is received exceeds $125,000 (or $250,000 for joint filers), then the amount of the premium reduction during the tax year must be repaid.

 As to how your termination falls whether is involuntarily or voluntarily that needs to be decided between you and your employer, as well as if you feel that your rights are not being met you can contact the Department of Labor at 866-444-3272 or visit www.dol.gov/COBRA