Starting in March 2009, unemployed Massachusetts residents who qualify for premium assistance under the Medical Security Program by having a family income below the 400% Federal Poverty Guidelines level, will be able to continue their health insurance coverage through COBRA with a 93% subsidy. If the full cost of family coverage was $1300 according to the separation/election notice you received, your cost will now be $91.
The Medical security program is reimbursing participants 80% of their costs. The Federal government, through the Economic Stimulus and Recovery Act, is subsidizing COBRA by 65% after March 1. This means the employee will write a check to their employer for 35% of $1300 = $455, then submit a claim to MSP and receive a rebate of $364, making their ultimate net cost $91.
The state policy is described here.
Now there are MANY problems with the administration of unemployment benefits in Massachusetts that I have blogged about here before. I’ll mention those again below with links–this is an email I’ve shared with the Governor’s office and my Representative. So while the policy above is GREAT, I am not saying it will be automatic.
Unemployed residents should file for benefits immediately and apply to the MSP program, then keep up with the application as best they can to ensure they get processed. Follow the links below for more information I’ve written about these topics, but the bottom line is:
Go, in person, to apply for benefits and send in the MSP form ASAP.
For those who want to do something about the frustration and difficulty associated with the process, here is what I propose to the state:
I’ve been blogging about my experiences with the DUA including a number of constructive suggestions. I tweeted about this and @MassGovernor said I should email the suggestions…
- Change the phone tree to allow re-activation of claims from the menu
- Determine MSP eligibility at time of filing initial claim.
- Make health insurance policies that fail to meet minimum creditable standards ILLEGAL to sell in MA.
- My original post about advice to the unemployed…7 tips
I have heard that DUA has hired more people to process claims on the phone and that eventually, the process will be moved online. But I have also heard from many people struggling with the frustration of not being able to get through to a person. No one was ready for this crisis but I believe efforts are underway to improve the situation.
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I haven’t read your previous post but wonder if people know that the can enroll for COBRA benefits at anytime during their enrollment period and are covered even if they received services before enrollment.
I was unemployed three years ago and am ever so grateful to my savvy friend who advised me not to sign up for COBRA benefits unless I needed them. I called Crosby benefits and they confirmed this.
I did actually blog about this, but I think it is a TERRIBLE idea. Right now, with the new law, there is a period where people who failed to elect COBRA before can now join. But the general rule was that you had 60 days from termination to elect, then 45 days to make your payments. I assume that on day 61, you are out of luck. On day 60, I elected COBRA and have to come up with about $3000 by April 15–much of which I will get back from MSP. You cannot pick and choose what months you are covered for–my employer told me that I would have to pay for all of January and February regardless of whether I had “used” the benefit or not.
The reason I think it is a bad idea is because if you are avoiding going to the doctor–it’s like you don’t really have insurance. You make bad decisions about the health of your family because you feel poor. Then, you have to pay anyway. So just enroll already–with the 93% subsidy now, there is no good reason to try and game the system.
The way COBRA works is that your employer keeps paying your premiums for 2 months after you are terminated. Then, they can stop and get a refund for those 2 months if you don’t elect. I don’t know what happens if you come back 6 months later and say you want COBRA now…
I sent my MSP application in about three weeks ago. I called today and was told that I wasn’t in the system yet. It’s taking them three to four weeks to open and input your data. Then its another 10 weeks (yes, she said ten weeks) to process your app. By this timeline I will know in early November if I qualify and might get a reimbursement check by December. In the meantime, I need to find a way to pay for five months of COBRA out of pocket. This isn’t what I’d call helpful to the average family struggling to make ends meet.
I have been out of work since April, 2009. I have held a part time job for the last several years.
My unemployment benefits have been interrupted twice (this time, I haven’t received a check for 3 weeks now!). THey say my claim has been coded a 9 (what does that mean?). I went in person to the unemployment office and then had to call to leave a message for a claim officer. No one has contacted me as to why I haven’t received a check, and no one seems to be able to help. Any suggestions?
If you are having trouble or keep getting jerked around, and don’t know where to turn call the Governor’s office. I know he is a moron, but he has some good people working for him, and their job is to kiss your ass to buy your vote. They have access to phone numbers that aren’t public, and they love to give them out. If they give you a number, don’t be surprised if the DUA worker asks how you got their private line before helping you out with everything you need. (888) 870-7770 is the number. Use it!
I have sent in two months of forms and receipts to the MSP. About how long does it normally take to receive a reimbusement check?
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