DOL Posts New COBRA Subsidy Information
The Labor Department Jan. 11 announced the posting of new information on its website concerning the premium subsidy program for continued health care benefits under the Consolidated Omnibus Budget Reconciliation Act. COBRA continuation assistance was extended with enactment of the 2010 Defense Appropriations Act signed into law Dec. 19, 2009. The program was created under the American Recovery and Reinvestment Act to assist involuntarily terminated workers in securing health coverage under their former employers' plans. The department's Employee Benefits Security Administration oversees the program, under which eligible individuals pay 35 percent of their COBRA premiums. The remaining 65 percent is reimbursed to the coverage provider through a tax credit. The department posted an updated premium reduction fact sheet and frequently asked questions for employees on its web page at http://www.dol.gov/ebsa/cobra.html.
