EBSA COBRA Premium Assistance
Program Description
The American Recovery and Reinvestment Act of 2009 contains COBRA premium assistance provisions that expand COBRA eligibility and provide eligible individuals with a 65 percent reduction of their COBRA premiums for up to 9 months. If eligible, these individuals pay only 35 percent of their COBRA premiums to the plan and the remaining 65 percent is paid by the employer through a payroll tax credit.Individuals denied the COBRA Premium Assistance made available under the American Recovery and Reinvestment Act may seek an expedited review of that denial by the Secretary of Labor.
General Program Requirements
To be eligible for assistance, you must meet all of the following requirements:- You must be eligible for continuation coverage under COBRA or a state law that provides comparable continuation coverage (for example, so-called "mini-COBRA" laws) at any time during the period beginning September 1, 2008 and ending December 31, 2009
- You must elect continuation coverage when first offered or during the additional election period
- You must have a qualifying event for the continuation coverage that is the employee's involuntary termination during the period beginning September 1, 2008 and ending December 31, 2009.
