Obama stimulus package includes reduction in COBRA premiums
The U.S. Department of Labor recently published a list of
Frequently Asked Questions on the COBRA premium subsidy
provisions.
The stimulus package, which was enacted as the American Recovery and
Reinvestment Act of 2009 (ARRA), temporarily reduces the premium for
COBRA coverage for eligible individuals by up to 60%. COBRA (the Consolidated
Omnibus Budget Reconciliation Act of 1985) allows certain people to
extend employer-provided group health coverage, if they would otherwise
lose the coverage due to certain events such as divorce or loss of a
job.
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