Posted on August 31, 2011

COBRA Subsidies for Laid-Off Workers Ends August 31, 2011

The government will no longer cover health insurance under the federal economic stimulus law as of August 31, 2011.

Under the American Recovery and Reinvestment Act of 2009, individuals, primarily those who had been involuntarily terminated from their jobs, could extend their health insurance coverage up to 15 months by paying their former employers 35% of the cost of coverage. Under the Consolidated Omnibus Budget Reconcilliation Act laid-off employees could extend their health coverage for up to 18 months by paying 102% of the premium cost.

Employers were responsible for paying the difference, but offset the cost with payroll tax credits.

The federal stimulus law originally benefitted those individuals who were laid off between September 1, 2008 and December 31, 2009, but the date was extended to May 31, 2010.