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The American Recovery and Reinvestment Act
Wednesday, March 4, 2009
The American Recovery and Reinvestment Act (COBRA Subsidy) provides a government funded subsidy to eligible individuals for the purchase of most COBRA coverage. The subsidy is equal to 65% of the monthly COBRA premium charge and is available for up to 9 months. The subsidy must be available by employers to individuals involuntarily terminated on or after September 1, 2008 and before January 10, 2010. The subsidy is limited to individuals who have a modified adjusted gross income of less than $145,000 ($290,000 for joint filers).
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