House and Senate negotiators reached a final agreement Wednesday, February
11, on the massive stimulus bill, which is expected to receive final approval
from the House and Senate by Friday.
The conferees’ agreement is similar to COBRA provisions approved by the
Senate this week. Under that measure, the subsidy would have been 50 percent of
the premium and it would have been available for up to 12 months.
The earlier House version called for a 65 percent premium subsidy up to 12
months. It also would have allowed employees with 10 years of service and those
55 and older to retain COBRA until eligible for Medicare, a potentially
decades-long entitlement that business groups successfully fought to have
removed.
According to a draft summary of the final compromise bill, the COBRA premium
subsidy would not be available to individuals with an annual income exceeding
$125,000 or to couples with annual incomes exceeding $250,000.
Like the earlier bills, the compromise measure would require employers to
locate employees laid off since September 1, 2008, who declined COBRA to tell
them they have a new right to opt for the coverage with the government picking
up 65 percent of the premium.
Individuals would have 60 days after receiving the notification to sign up
for the coverage. The subsidy would be prospective, applying to future premium
payments.
Filed by Jerry Geisel of Business Insurance, a sister
publication of Workforce Management. To comment, e-mail editors@workforce.com.
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