COBRA Coverage Under ARRA

As part of the enormous stimulus package in the American Recovery and Reinvestment Act of 2009, the federal government included some relief for laid-off employees.

California Labor and Employment Law Blog

Mark Spring discusses the COBRA subsidy in ARRA over at the California Labor and Employment Law Blog: The Stimulus Bill’s Impact on COBRA.

The biggest change to COBRA is a 65% subsidy from the government for certain eligible COBRA participants.  The 65 percent subsidy is advanced by the employer and then recouped by a credit against payroll tax submissions.  The subsidy is available to eligible individuals for up to nine months.

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