COBRA Premium Assistance Extension

Date: 03/04/2010 Author: Vicky Pulos, MLRI

On March 2, 2010 The Temporary Extension Act of 2010 extended the COBRA Premium Assistance program. The same law also extended unemployment benefits and maintained 2009 poverty levels through 3-31-10 among other things.

COBRA premium assistance reduces a laid-off employee's premium costs from 100% to 35% of the total premium cost. It is available to people who were enrolled in an employer health plan, laid off between 9/1/08 and (now) 3/31/2010 and who are not eligible for other group coverage (e.g. through a spouse) or Medicare. Premium Assistance lasts for up to 15 months or until expiration of COBRA coverage if earlier. The March extension also provides that someone who 1st qualified for COBRA based on a reduction in hours during the protected period (not job loss) and then loses the job after March 2, 2010 can also qualify for premium assistance. A December 2009 amendment clarified that it is only the job loss not termination of employer insurance coverage that must occur in the protected period (now ending 3/31/10)

The DOL website contains detailed information on COBRA and the premium assistance program: http://www.dol.gov/ebsa/cobra.html