Important Notice Regarding COBRA Continuation Coverage Premium Subsidy Extension

Updated: January 2010

In December 2009, the federal government  extended the eligibility period for the COBRA premium subsidy through February 28, 2010 and increased the maximum period in which employees can receive the subsidy to 15 months.

The federal government now provides a 65 percent COBRA premium subsidy for eligible employees who are involuntarily terminated from employment between September 1, 2008, and February 28, 2010 (and their family members who are COBRA qualified beneficiaries).

The subsidy does not apply to RNs who voluntarily resigned, went on unpaid leave of absence, or lost health coverage due to a reduction in work hours.

Eligible individuals are required only to pay 35 percent of the required COBRA premium during the applicable subsidy period. The subsidy applies to coverage periods beginning as of March 1, 2009, and it is now available to eligible individuals for a period of up to 15 months (or shorter, if the person's COBRA coverage period expires). The subsidy was initially available for up to nine months but it has been extended by six months.

The subsidy is not available if the individual is eligible or becomes eligible for Medicare or other group health coverage (excluding certain types of limited coverage), even if he or she does not actually enroll in such other coverage. In addition, all or a portion of the subsidy must be repaid if the individual reaches certain income thresholds in the year in which the subsidy is provided.

The above is intended to be a very brief, general summary to alert you to the changes to this government subsidy. Please contact the Benefits Fund office at (877) RN BENEFITS if you have any questions regarding your eligibility for the subsidy or the latest extensions outlined above.