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The American Recovery and Reinvestment Act (ARRA) provided a COBRA premium reduction for eligible individuals who were involuntarily terminated from employment through May 31, 2010. Individuals who qualified on or before May 31, 2010 may continue to pay reduced premiums for up to 15 months, as long as they are not eligible for another group […]

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Due to the statutory sunset, the COBRA premium reduction under ARRA is not available for individuals who experience involuntary terminations after May 31, 2010. However, individuals who qualified on or before May 31, 2010 may continue to pay reduced premiums for up to 15 months, as long as they are not eligible for another group […]

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“Assistance Eligible Individuals” pay only 35 percent of their COBRA premiums; the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage that began on or after February 17, 2009 and lasts for up to 15 months.

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“On April 15, 2010, the President signed into law an extension of unemployment benefits and the COBRA premium assistance that helps with the cost of health benefits for Americans who lost their jobs. This extension provides a COBRA premium subsidy for eligible individuals who are involuntarily terminated from employment through May 31, 2010.

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FAQs on the COBRA Premium Reduction Extension Provisions Related to the Temporary Extension Act of 2010

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MEDIA RELEASE The American Recovery and Reinvestment Act of 2009 (ARRA), as amended by the Department of Defense Appropriations Act (2010 DOD Act) on Dec. 19, 2009 and the Temporary Extension Act of 2010 (TEA) on March 2, 2010, provides for premium reductions for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, […]

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MEDIA RELEASE The American Recovery and Reinvestment Act of 2009, as amended by the Department of Defense Appropriations Act (2010 DOD Act) on Dec. 19, 2009 and the Temporary Extension Act of 2010 (TEA) on March 2, 2010, provides for premium reductions for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly […]

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MEDIA RELEASE The U.S. Department of Labor has released state-by-state figures on the number of individuals who will lose their unemployment benefits in the coming days if Congress fails to extend unemployment insurance benefits. If Emergency Unemployment Compensation and full federal funding for the Extended Benefit program are not extended, 400,000 Americans will lose unemployment […]

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MEDIA RELEASE A group of 31 senators has sent a letter to Senate Majority Leader Harry Reid and Senate Finance Chairman Max Baucus urging an extension of unemployment benefits and eligibility for the COBRA Premium Assistance Program through Dec. 31, 2010. The letter urged swift action on providing relief for unemployed Americans. “As our nation […]

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