Social Security Announces Stimulus Payments in May 2009

Quatrini Rafferty has recently learned that Social Security intends on disbursing stimulus payments in May 2009. We have reprinted SSA's announcment below for your convenience:

Vice President Biden Announces $250 Recovery Payments to Go
to Social Security and SSI Beneficiaries in May; Payments will inject more than $13 Billion into Economy

Vice President Joe Biden and Michael J. Astrue, Commissioner of Social Security, announced today that the federal government will send out $250 economic recovery payments to people who receive Social Security and Supplemental Security Income (SSI) benefits beginning in early May 2009 and continuing throughout the month. No action is required to get the payment, which will be sent separately from the person’s regular monthly payment. "The Social Security Administration and Commissioner Astrue have been working closely with other federal agencies to get these payments out the door in record time and into the hands of folks who need it most," said Vice President Biden. "These are checks that will make a big difference in the lives of older Americans and people with disabilities - many of whom have been hit especially hard by the economic crisis that has swept across the country."

"We have been working diligently to issue the $250 one-time recovery payments as soon as possible," Commissioner Astrue said. "The legislation requires extensive coordination with other federal agencies and I’m pleased we are on track to issue these recovery payments earlier than the statute requires. Soon more than $13 billion will be in the hands of more than 50 million Americans."

The American Recovery and Reinvestment Act of 2009 provides for a one-time payment of $250 to adult Social Security beneficiaries, and to SSI recipients, except those receiving Medicaid in care facilities. To receive the payment the individual must be eligible for Social Security or SSI during the months of November 2008, December 2008 or January 2009. The legislation also provides for a one-time payment to Veterans Affairs (VA) and Railroad Retirement Board (RRB) beneficiaries. The VA and RRB will be responsible for paying individuals under their respective programs. However, if someone receives Social Security and SSI, VA or RRB benefits, he or she will receive only one $250 payment. People getting Social Security or SSI should not contact the agency unless a payment is not received by June 4, 2009.

For more detailed information about the $250 one-time economic recovery payments, go to www.socialsecurity.gov/payment. To learn more about the American Recovery and Reinvestment Act of 2009, go to www.recovery.gov.

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Stimulus Bill Expands COBRA Coverage

The new Stimulus Bill signed into law by President Obama includes an unprecedented expansion for COBRA, the federal statute that provides workers and their families with access to 18 months of health benefits from their previous employer.

To this point, the former employee had to pay for his or her portion of what the employer once paid on their behalf. The new legislation lends a hand to the former employee, funding up to 65% of the COBRA premium for those who became eligible for COBRA coverage between Sept. 1, 2008 and Dec. 31, 2009. The legislation also gives the recently unemployed a second chance to enroll in COBRA coverage.

An online article in the The City Wire (http://www.thecitywire.com/index.php?q=node/2977) does a nice job of breaking down the details of the plan:

Employee Eligibility

Individuals who have been involuntarily terminated between September 1, 2008 and December 31, 2009 with annual incomes less than $125,000 (single) or $250,000 (couples) are eligible for the COBRA premium assistance, along with their family. Qualified individuals, who initially decline COBRA coverage, would be given an additional 60 days after they receive notice of the special election period to elect to receive the subsidy. The election period begins on the date of enactment of the ARRA.

Special Enrollment

The bill allows group health plans to provide a special enrollment right to allow eligible individuals to elect different coverage under the plan in electing COBRA continuation coverage.

Notice Requirements

COBRA notices must include information on the availability of the premium assistance. Model notices from the Department of Labor are due 30 days after enactment.

Effective Date

These provisions are effective for premiums the first calendar month following the date of enactment.

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Stimulus Payments for Recipients of Social Security / SSI

President Obama recently signed into law the American Recovery and Reinvestment Act of 2009. This act provides for the one-time payment of $250 to individuals who get Supplemental Security Income or Social Security benefits.

Social Security expects everyone who is entitled to a payment to receive it by late May 2009. They are currently working on the details regarding how they will issue over 60 million one-time payments to beneficiaries.

They will deliver the payment in the same way they currently deliver Social Security or SSI benefits. If they deliver monthly benefits by check, they will deliver the one-time payment by check. If they receive a monthly direct deposit or Direct Express debit card payment, that is how they will receive the one-time payment.

Individuals receiving benefits from the U.S. Department of Veterans Affairs or Railroad Retirement Board may be eligible for these one-time payments.

For more information please see Social Security's website at: http://www.ssa.gov/payment/ or contact Quatrini Rafferty at 724-837-0080.

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