In his first remarks to a joint session of Congress in a pseudo-State of the Union address, President Obama vowed that health care reform would come within a year, but provided few details, according to a Reuters news article.

CNN reports that the president did, however, place preventive care at the forefront of a promised reform in American health care, and touted extensive changes his administration has made to COBRA that force employer action as early as March 1.

Employers with 20 or more full-time (or full-time equivalent) employees face a slew of new regulations regarding COBRA, thanks to new provisions in the economic stimulus legislation signed by the president on February 17.

Some of these changes are huge, including subsidy payments the government will force employers to pay. Other provisions could require major time and capital expenditures on the part of employers. But more important is that some of the changes are happening NOW, meaning employers had better get moving in order to comply. Health insurance agents with commercial clients would do well to get this information to those clients.

HRS/TND Associates, a Pennsylvania-based human resources consulting firm, did a good job in summarizing the requirements. Click here to see their fact sheet, which includes some important tax information.

6 Responses

1. Troy Says:
   February 27th, 2009 at 12:44 am

   Millions of Americans who lost their jobs prior to September 1, 2008 could not afford Cobra. Millions more elected Cobra but have now depleted their resources and can not continue on. Still millions more with pre-existing conditions who rely on cobra to bridge the 18 month gap between their former employers insurance and their state’s high risk insurance pools are struggling to pay their premiums every month to prevent being locked out of insurance permanently.

   Please join us in asking Congress and the Obama administration to eliminate the arbitrary September 1, 2008 cut-off date and 9 month limitation of assistance by signing our petition at ipetitions.com under cobrareform and telling your friends about our efforts

2. Starr3214 Says:
   February 27th, 2009 at 7:23 pm

   So this is just Obama following through on his campaign promises to shift the wealth; to promote a universal health care system where he dictates the cost and benefits. This will only result in perm employees going to part time or being laid off now before this law kicks in. Obama has been planning these changes for a long time: gun control; illegals to vote; entitlement programs expanded–and taxes on the upper and middle class. This methodology is un-American.

3. Cliff Dunn Says:
   March 4th, 2009 at 2:45 pm

   I am currently employed full time but with no insurance and I cant afford the 500 a month cobra payment due to the fact that my previous employer had a higher rate than any of my other work places due to the age of my coworkers (all my coworekers age over 50 I was subsidizing there health care totaly unfair but now i am stuck with the high cobra.)
   any way I need help I cant afford 500 a month
   I left my old job in november can i get on board with the ne cobra reforms??

4. Starr3214 Says:
   March 5th, 2009 at 6:34 pm

   Cliff,
   MD is one of the great states that still has a BCBS with affordable rates! Thank God MD stopped Jews from selling it to Anthem like CO where I also work. Here the individual prem is $500 or more for a $1K-5K ded!!
   You have open enrollment in MD for all the providers there. Check it out or call a good Health Agent.

5. Starr3214 Says:
   March 5th, 2009 at 6:36 pm

   Well, we know the conditions now on the new Cobra laws; going back to Sept 08, employers are “ordered” to pay 65% of the Cobra prem for any employee who left, fired, who now does not have insurance. Yes, not only the cost but all the new paperwork required…will def drive some businesses bankrupt now, as well as others to not hire or to put their employees on part time.

6. Rhonda Says:
   March 26th, 2009 at 10:52 pm

   Please someone help me. I had a heart attack in 2008. My STD lasted until October at which time I was considered terminated by my employer. My insurance was paid through December 2008..a hospital where I live paid my COBRA Jan-Mar 2009. Can I get help and how do I get it so I can continue my COBRA in April. I need help/advice FAST! Please help me. shadowiu[at]aol[dot]com

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