Updated from 2/25/09
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (H.R. 1, S. 1) (the “Act”), which, among other things, amends the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).
The Act provides:
- for a government subsidy of up to 65 percent of the COBRA premiums (including state “mini-COBRA” coverage) to certain eligible individuals (known as “assistance eligible individuals”);
- that the COBRA subsidy applies only to individuals who are eligible for COBRA due to an involuntary termination from employment from September 1, 2008, through December 31, 2009; and
- that the COBRA subsidy applies for a maximum of nine (9) months of coverage (beginning on March 1, 2009).