How does the premium reduction work?
A. It works the same way as standard COBRA coverage. However, instead of paying the full premium to the former employer/insurer, you will pay 35% of the premium. The former employer/insurer will be compensated for the other 65% of the premium by the federal government. The premium reduction is available as of your first period of coverage beginning on or after February 17, 2009, the date of enactment of this law. Some plans may have already sent out bills for the full premium. If you get a bill for the full premium and pay it, you will either be reimbursed for the overpayment or receive a credit toward future premium payments.
