2009 COBRA Subsidy

The following is an update on COBRA benefits which have been extended to displaced workers beginning in 2009. This information can be referenced directly at the U.S. Department of Labor’s website here.

The Obama Administration’s American Recovery and Reinvestment Act of 2009 (ARRA) provides for a 65% reduction in COBRA premiums for certain assistance eligible individuals for up to 9 months. An assistance eligible individual is a COBRA “qualified beneficiary” who meets all of the following requirements:

Is eligible for COBRA continuation coverage at any time during the period beginning September 1, 2008 and ending December 31, 2009;
Elects COBRA coverage (when first offered or during the additional election period), and
Has a qualifying event for COBRA coverage that is the employee’s involuntary termination during the period beginning September 1, 2008 and ending December 31, 2009.

Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction. Other limitations may also apply. There is no premium reduction for periods of coverage that began prior to February 17, 2009. Individuals who request treatment as an assistance eligible individual and are denied such treatment by their group health plan may have the right to appeal to the Department. The Department is currently developing a process and an official application form that will be required to be completed for appeals.

The content of the website is provided for informational purposes only. No content of the website is intended to constitute or be a substitute for professional advice. In addition, this web site may contain links to third-party web sites provided as a cou rtesy. They are not intended to nor do they constitute an endorsement of the linked materials. When clicking on such links, please note that you are exiting this site and navigating to another. HealthCare.com is not responsible for the content of such websites.