COBRA Continuation Coverage


December 19, 2018

Overview

The American Recovery and Reinvestment Act of 2009 contains the Consolidated Omnibus Budget Reconciliation Act (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.

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 addiional 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.

The applicant (person requesting review of a denial of premium assistance) may either be the former employee or a member of the employee's family who is eligible for COBRA continuation coverage or the COBRA premium assistance through an employment-based health plan. The employee and his or her family members may each elect to continue health coverage under COBRA, request the premium assistance, and request a review of a denial of premium assistance.

Application Details

None

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