Who benefits from the new mini-COBRA law?
• Former employees who qualify for the premium reduction will only be required to pay 35% of the premium for continuation coverage. For employees of small businesses, the remaining 65% will initially be paid by the insurer providing coverage under the group plan. The insurer will then be reimbursed by the federal government. • ARRA also permits employees of larger businesses (20 or more employees) who declined or withdrew from COBRA due to its high cost a second chance to join the program and receive the 65% premium reduction. • For employees of small businesses (less than 20 employees) who lost their jobs after September 1, 2008, the new mini-COBRA law will: • Provide a second opportunity to continue their employer-based health insurance and receive the 65% premium reduction. • Ensure that all eligible employees receive timely information about their rights to continue group coverage and receive the premium reduction. For detailed fact sheets about the stimulus plan premium reductions
