How long does the subsidy continue?
The subsidy continues for up to 9 months or until; the individual becomes eligible under another group health plan or Medicare (not necessarily enrolled, but just eligible), the individual reaches the maximum period of coverage required under COBRA, the individual fails to timely pay their portion of premium, or the employer ceases to provide any group health plan to any employee. Individuals becoming eligible under another plan or Medicare must notify their former employer in writing, otherwise they may be subject to a penalty of 110% of the subsidy paid on their behalf. Although the subsidy continues for up to 9 months, the time period is measured separately from COBRA coverage. Therefore, if an individual has more than 9 months of COBRA remaining they would revert back to paying the full premium upon the expiration of the subsidy. The subsidy is for 9 months after the qualifying event occurring on or before December 31st, 2009. In this case, the subsidy may run until September 30th,
