COBRA Premium Reduction Information

NOTICE: The American Recovery and Reinvestment Act of 2009 (ARRA), as amended on December 19, 2009, by the Department of Defense Appropriations Act, 2010 (2010 DOD Act) provides for premium reductions for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. The 2010 DOD Act extended the COBRA premium reduction eligibility period. The involuntary termination must occur during the period that began September 1, 2008, and ends on May 31, 2010. The premium reduction applies to periods of health coverage that began on or after February 17, 2009, and lasts for up to 15 months.

UPDATE: Individuals who qualified for the premium reduction before May 31, 2010, are eligible for reduced premiums for up to 15 months as long as they are not eligible for another group health plan or Medicare. As of July 16, 2010, individuals who experienced an involuntary termination after May 31, 2010, are not eligible for premium reduction assistance. Individuals who believe they were incorrectly denied the subsidy can request a review of the denial. The application for review can be found at www.continuationcoverage.net/.

For questions or complaints concerning the COBRA ARRA Subsidy, please call the federal and state helpline (Maximus) toll-free at 1-866-400-6689. For more information on the COBRA ARRA Subsidy, please go to the DOL website at www.dol.gov/ebsa/cobra.html and view the “For Employers” section.