COBRA subsidies expanded for laid-off workers

Tuesday, December 22, 2009

A measure to extend a federal subsidy under COBRA (Consolidated Omnibus Budget Reconciliation Act) to certain laid-off workers was signed by President Barack Obama on Monday. The new law extends the subsidy for six months, for a total of 15 months—an increase from nine months. The subsidy is available to laid off workers at companies with 20 or more employees.

The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under COBRA. Eligible people pay only 35 percent of their COBRA premiums.

Eligibility was about to expire on Dec. 31, but has been extended to cover workers laid off between Sept. 1, 2008 and Feb. 28, 2010.

The law requires employers to notify current and future COBRA beneficiaries of the extended eligibility. For more information, you can contact your health insurance provider or call the Department of Labor at 866-444-3272.

Click here to read a Department of Labor fact sheet on the program.