Consolidated Omnibus Reconciliation Act (COBRA)
Premium Reduction Provisions under the American Reinvestment and Recovery Act (ARRA)
The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law on February 17, 2009, and provides a 65% COBRA Premium Reduction (COBRA Subsidy) of employer sponsored group health plans for a maximum of nine (9) months to employees who are involuntarily terminated between September 1, 2008 and December 31, 2009, and are eligible for COBRA at the time of the termination. Qualified beneficiaries, including eligible family members, pay the remaining 35% of the monthly COBRA premium. For qualifying individuals, the COBRA Premium Reduction will apply only to group health, dental and vision plans. You also have the right to waive the COBRA Premium Reduction. The decision to waive is irrevocable.
To help determine whether you can get the ARRA premium reduction, you should read this notice and the attached documents carefully. In particular, reference the “Summary of the COBRA Premium Reduction Provisions under ARRA” with details regarding eligibility, restrictions, and obligations and the “Application for Treatment as an Assistance Eligible Individual.”