2009 Stimulus: COBRA Continuation Coverage
As you may have heard, the American Recovery and Reinvestment Act of 2009, the stimulus package passed in 2009 to help combat the recession, had provisions that would extend the benefits of the COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) insurance act. Specifically, the stimulus bill provided a benefit to those eligible of a 65% tax credit on insurance premiums. Eligible individuals would pay only 35% of their COBRA premiums out of pocket and the balance was return as a tax credit.
The reduction applies only to periods of health insurance coverage starting in February 17, 2009 for nine months as long as you were involuntarily terminated between the period of September 1st, 2008 and December 31, 2009. For more information, you can check out the Department of Labor COBRA page.