COBRA Continuation Coverage Assistance under the American Recovery and Reinvestment Act (ARRA) of 2009

The American Recovery and Reinvestment Act of 2009 (ARRA) created new rights to COBRA premium assistance for employees (and their families) who were/are involuntarily terminated and lost health coverage, between September 1, 2008 and February 28, 2010.  The premium assistance (subsidy) is available for certain “assistance eligible individuals” (AEIs) for periods of coverage beginning on or after February 17, 2009 (March 1, 2009).  Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is paid by the employer and reimbursed through a tax credit.

The ARRA also provides additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA, by providing an extended election period for certain individuals who did not have an election of COBRA continuation coverage in effect on the date of enactment (February 17, 2009).  The election is available for individuals who would be assistance eligible individuals if they had a COBRA continuation coverage election in effect (that is, as the result of an involuntary termination on or after September 1, 2008).  This extended election period is for 60 days after the qualified beneficiary is notified of the extended election period.  The County of Riverside mailed these notices to eligible individuals on April 15, 2009. 

Click here for a sample information package.  This package includes the information and forms you need to make a COBRA election and apply for the subsidy.  If you believe you qualify for this assistance and did not receive a notification, contact the COBRA Administrator at (951) 955-1000.

Resources:

o         Department of Labor

o         Internal Revenue Service

o         County of Riverside Sample Notice

o         Send a Question