Important Information regarding the President's Economic Stimulus Package and COBRA

Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in 1986. The law amends the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise might be terminated.

COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. This coverage, however, is only available when coverage is lost due to certain specific events. Group health coverage for COBRA participants is usually more expensive than health coverage for active employees, since usually the employer pays a part of the premium for active employees while COBRA participants generally pay the entire premium themselves. It is ordinarily less expensive, though, than individual health coverage.

For information regarding The American Recovery And Reinvestment Act Of 2009 which provides for a 65% reduction in COBRA premiums for certain assistance eligible individuals please click here.

For additional information pertaining to COBRA coverage please click here.

Frequently Asked Questions on the COBRA Premium Reduction