COBRA Health Insurance Continuation Premium Subsidy
American Recovery and Reinvestment Act (ARRA) – COBRA Premium Reduction/Subsidy
The American Recovery and Reinvestment Act (ARRA), was signed into law by President Obama on February 17, 2009. One of the key portions of this legislation provides temporary assistance for individuals under the Consolidated Omnibus Budget Reconciliation Act of 1985, more commonly known as COBRA. The premium reduction/subsidy applies to (assistance) eligible individuals who will pay only 35 percent of the regular COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit that is considered a subsidy of the regular COBRA premium.
The subsidy is available for individuals whose modified adjusted gross income is $145,000 per year or less (or $290,000 for a taxpayer filing a joint tax return). If the eligible’s individual income is between $125,000 and $145,000 per year or between $250,000 and $290,000 for a taxpayer filing a joint tax return, the subsidy amount in decreased. Participants must attest that their same-year income will not exceed $125,000 for individuals and $250,000 for families. For more information read our COBRA Dealer Memorandum.
COBRA Dealer Memorandum (April 17, 2009)
COBRA General Notice to COBRA Participants
COBRA General Notice to COBRA Participants (Second Chance Letter)
NYS Extension of Cobra Law from 18 to 36 months Sponsors Memo
NYSID's Summary of Continuation Coverage Extension to 36 Months and FAQ's
Fact Sheet for COBRA premium reduction (Employees)
FAQs For Employees About COBRA Premium Reduction Under ARRA
FAQs For Employers About COBRA Premium Reduction Under ARRA
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