Cobra, the new plan.

[Scott S]

First start I don't do the paperwork side of my company my wife does so if I get this a bit wrong forgive me.

The new plan as I understand it is the government will pick up 65% of the insurance costs if we lay off or fire an employee. The employee pays me his portion or 35%(around $150) I pick up the remainder and send the money to the insurance company.

The government will allow me to reduce my payroll reporting(form941) by the amount I payed to the insurance company. What happens if all my guys get laid off and want Cobra coverage? I will have no payroll taxes to report, so no reimbursement until when? No plans yet for that....

There are already new companies being formed to deal with this new plan, I thought about it for less than a minute and came up with several ways to scam it.

Have any of you gone to a seminar by your insurance company yet?

Scott S

[Dan40]

Originally Posted by Scott S

First start I don't do the paperwork side of my company my wife does so if I get this a bit wrong forgive me.

The new plan as I understand it is the government will pick up 65% of the insurance costs if we lay off or fire an employee. The employee pays me his portion or 35%(around $150) I pick up the remainder and send the money to the insurance company.

The government will allow me to reduce my payroll reporting(form941) by the amount I payed to the insurance company. What happens if all my guys get laid off and want Cobra coverage? I will have no payroll taxes to report, so no reimbursement until when? No plans yet for that....

There are already new companies being formed to deal with this new plan, I thought about it for less than a minute and came up with several ways to scam it.

Have any of you gone to a seminar by your insurance company yet?

Scott S

If 35% = $150., that tells me you are talking about your group insurance health insurance premium for family coverage. $430.
Insurance under Cobra could easily run double that or more.


Ahh, some details still to be worked out,,,,,,,,,, The Obama mantra....

Dan

[cobra de capell]

Scott - go here (Department of Labor) - a page dedicated to this subject.

It appears that the first event is notification by the Plan Administrator to those involved. Not sure how it works after that, but possibly the Insurance Companies need notification from the Plan Administrator.

http://www.dol.gov/ebsa/newsroom/fsC...reduction.html