COBRA Health Insurance Continuation Premium Subsidy for H1b employees

[kevinkris]

Hi All,

My friend got laid off on Dec 19th 2008. And he got another job, but the new employer is not providing him Group Health Insurance. They are asking to take him Individual Family plan and saying they will reimburse. But the problem is, he is in Albany, NY and he got to know that they are no individual plans in NY which is really odd.

He wants to use COBRA but it's really expensive 1200$ per month. But luckily we saw that there is a 65% discount for people who laid off between 1st Sept 2008 and Dec 31st 2008.
But want to know whether H1b employees are eligible for this discount or only American Citizens and Green Card holders?

Please find IRS article regarding the same.
http://www.irs.gov/newsroom/article/...204505,00.html

Thanks for your help.

[whitecollarslave]

See this FAQ - http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.HTML

There is a phone number for Benefits Advisors in the FAQ above. You can call them and find out for your specific situation.

[ajp5]

COBRA is a good option but I know its crazy expensive. They also have a high deductible plan. If your friend does not have kids (or even if he does) you could opt for HD plan - their premiums are much lower (< $500 for family). eg. for a doctors visit, under normal plan he would be paying 40$ copay and insurance would pay in-network negotiated rate of say $120. With HD plan he would need to pay $120 for doctors visit until he reaches deductible of $6k for the year. Not a bad option if you are healthy individual - covers you well in worst case scenario... Ask your family doctor in india to send you imp drugs, antibiotics etc etc. Within 100$ you can cover all medicine expenses...

If you need any help on that send me a PM.