How to Get a COBRA Insurance Subsidy

The American Recovery and Reinvestment of 2009 contains COBRA insurance subsidies for eligible employees who were involuntarily terminated between September 1, 2008 to December 31, 2009. COBRA is a federal law that guarantees eligible employees to continue the right to purchase health insurance at group rates after a job termination. To find out if you qualify for the government's COBRA insurance subsidy, follow the steps below.

Instructions

1. To qualify for the COBRA insurance subsidy, you must be involuntarily terminated from your job between September 1, 2008 and December 31, 2009. The COBRA insurance subsidy applies to all employers that have group health insurance plans. Involuntarily separated employees who did not lose their jobs through gross misconduct and their dependents are covered under this program. The COBRA subsidy is applicable to premiums paid after February 17, 2009.

2. The COBRA insurance subsidy covers 65% of monthly COBRA premiums for employees and their eligible dependents up to nine months. If you are eligible to be on your spouse's health insurance, you cannot receive the COBRA insurance subsidy. If your previous employer terminates its health coverage, the COBRA insurance subsidy may no longer be valid.

3. Single employees whose income is between $125,000.00 and $145,000.00 and married couples whose income is between $250,000.00 and $290,000.00 will receive a lower subsidy. Single employees whose income is over $145,000 and married couples whose income is over $290,000.00 are not eligible for COBRA insurance coverage.

4. The COBRA insurance subsidy will continue for nine months after the COBRA insurance eligibility date or until the employee becomes eligible for Medicare or eligible for another group health plan. If you turned down COBRA insurance, you may be able to reinstate the coverage.

5. Employers are required by law to notify former employees that they have the right to choose COBRA insurance and receive the subsidy. The COBRA insurance subsidy in not retroactive for previously paid premiums before February 17, 2009.

Resources

• Department of Labor - COBRA Insurance