The federal government had been subsidizing 65% of COBRA premiums as part of the American Reinvestment and Recovery Act since March of 2009. This subsidy was designed to provide aid to the millions of Americans that have lost their jobs in the recent recession. In Late December 2009, The President signed the Fiscal Year 2010 Defense Appropriations Act which extends the eligibility period for the COBRA premium reduction for an additional two months (through Feb. 28, 2010) and the maximum period for receiving the subsidy for an additional six months (from 9 months to 15 months).

What is Cobra Insurance?

COBRA (Consolidated Omnibus Reconciliation Act) is a supplemental insurance policy that provides temporary health insurance to eligible workers who have lost their jobs at the same group rate that they received from their former employer. Recently, Congress passed a COBRA Subsidy Extension that extends the eligibility period from 9 months to 15 months (details below).