Premium Help May Be Available for Some

The recently enacted economic stimulus bill (P.L. 111-5) contains a provision providing that employees who are involuntarily terminated between September 1, 2008 and December 31, 2009 may have premium assistance for their temporary continuation of coverage of health insurance, including FEHB, representing 65 percent of health insurance premiums for up to nine months or until they become eligible for other group coverage or Medicare or their 18-month TCC period ends, whichever is first. OPM has told agencies to identify former employees who have been involuntarily separated to notify them of their eligibility. Those who did not elect TCC on separation may be given a new opportunity to elect it, OPM said, but high-income individuals may be subject to taxes on the benefit.