News and Announcements

COBRA Premium Reduction Extended

JAN. 11, 2010 - The duration for the Consolidated Omnibus Budget Reconciliation Act (COBRA) premium reduction initiated under the American Recovery and Reinvestment Act (ARRA) has been extended from nine months to fifteen months.

The COBRA premium reduction discounts the COBRA premium to 35 percent of the total premium for eligible individuals. Generally, individuals eligible for the premium reduction are those who experienced an involuntary termination between September 1, 2008, and February 28, 2010.

On December 19, 2009, President Obama signed legislation that states if you:

  • Are currently eligible for the premium reduction and approaching the end of your nine months, your nine months has been extended to fifteen months.
  • Were eligible for the COBRA premium reduction and your nine months ran out, you may qualify for the subsidy for an additional six months. If you paid the full premium before the extension was declared, you will be credited for the overpayment of those months. Even if you stopped paying COBRA premiums, you now have the opportunity to pay back, at the reduced premium, the months you missed and continue your reduced premium rate for a total of fifteen months.
  • Have experienced or experience an involuntary termination between September 1, 2008, and February 28, 2010, you may be eligible for the COBRA premium reduction.

This extension does not extend the total duration of regular COBRA coverage, which in most cases is a total of 18 months. It only extends the number of months you may pay the premium at the reduced rate. The extension does not change COBRA coverage termination when an individual enrolls in other available coverage or becomes eligible for Medicare.

If you experience a COBRA qualifying event you will receive a notice explaining your COBRA rights including information on the reduced premium. If you have questions, please contact Customer Care at 866-342-6555, Monday through Friday, 7 a.m. to 5 p.m. CST. You can also review our COBRA Premium Reduction Extension Frequently Asked Questions and the Department of Labor's Frequently Asked Questions for more information.