COBRA Documents for Workers or Former Workers

Premium Reduction Fact Sheet

Frequently-Asked Questions: Premium Reduction

Poster

Flyer for Individuals

Flyer for Individuals Denied COBRA Premium Reduction

Official Application for DOL Review (for individuals denied the premium reduction)

 

COBRA Documents for Employers

Premium Reduction Fact Sheet

Flyer for Employers

Model Notices



Above are notices that explain the recent extension of an important recent health benefit subsidy for Dislocated Workers, which can save workers almost 2/3 off their COBRA health insurance premium for up to 15 months. The American Recovery and Reinvestment Act of 2009 (ARRA), as amended on December 19, 2009, by the Department of Defense Appropriations Act (2010 DOD Act), provides for premium reductions for health benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985.

The 2010 DOD Act extended the COBRA premium reduction eligibility period for two months until February 28, 2010, and increased the maximum period for receiving the subsidy for an additional six months (from 9 to 15 months). Eligible individuals pay only 35% of their COBRA premiums, and the remaining 65% is reimbursed to the health coverage provider through a tax credit.

Eligible individuals must have been involuntarily terminated from their jobs between September 1, 2008, and February 28, 2010. The premium reduction applies to periods of health coverage that began on or after February 17, 2009, and the premium reduction lasts for up to 15 months.

To receive e-mailed updates from EBSA about any new information on their COBRA Extension website, enter your e-mail address here.

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