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Complaint 0 of 0 in "COBRA or Coordination of Benefits"

Insurance Carrier: Cobra
State: Nevada

Consumer Complaint:

I became disabled (due to a serious medical condition which is expected to last until death). Sept 28, 2008 my health plan thru employer was turned over to Cobra. I was paying $166 a month and now I am paying $300.98 for Cobra. I filed for SSDI in Jan and was told it could take up to at least 5 months. I am receiving $1300 a month thru my long term disability; my rent is $782.50 and utilities are $235 so as you can see I cannot buy food. My mother tries to help me and sends me what she can, but she receives $1200 social security. Cobra sent me a form about the new stimulus Obama passed reducing Cobra premiums which would have been reduced to $125 a month. I signed it and sent it back but my employer denied my claim and said that they considered my termination voluntary. I called the Department of Labor and was told that the new bill that was passed was only for people who were laid off or terminated through no fault of their own and was not for people who were on medical leave.


Insurance Expert Answer:

The reason COBRA costs more than what came off your paycheck for health insurance was that the employer paid part of the cost of the health insurance.  With COBRA you have to pay 2% more than the combined payment you would have made and the employer's contribution. We have not completed an analysis as to what the new law provides in terms of those eligible for a 2/3rds government co-pay; we likely will defer doing so for months as more changes are reportedly in the works.