ARRA COBRA Subsidy Extended

December 27, 2009

Persons who lost their jobs during the period September 15, 2008 and December 31, 2009 have received a welcome holiday gift. Under the American Recovery and Reinvestment Act of 2009, employees who were involuntarily terminated from their jobs were entitled to a 65% federal subsidy for their COBRA premiums. The subsidy, however, was to last only nine months, i.e., through December 31, 2009.

The 2010 Defense Appropriations Act, however, has extended the period of the subsidy to 15 months, meaning that those who began receiving the subsidy earlier in 2008 may receive the subsidy for up to 15 months.

In addition, the deadline for eligibility has been extended to February 28, 2009. Anyone who is involuntarily terminated for reasons other than gross miscondcut between now and February 28, 2009, if eligible for COBRA will be eligible for the subsidy.