Who qualifies for the subsidy?
In short, assistance eligible individuals qualify for the subsidy. An assistance eligible individual is an employee whose employment is involuntarily terminated (for reasons other than gross misconduct under COBRA) on or after September 1, 2008, and before December 31, 2009, who is eligible for COBRA continuation, and who elects COBRA coverage. Family members of assistance eligible individuals are also eligible for the subsidy, unless the family member becomes eligible for COBRA continuation coverage for any reason other than involuntary termination of employment, like divorce or loss of dependant status. Individuals who are eligible for other group health coverage or Medicare are not eligible for the subsidy. Also, there is no premium reduction for periods of coverage that began prior to February 17, 2009 and certain high income individuals are ineligible. Q: How does the subsidy work? A: When an individual makes a payment of 35% of the premium for COBRA coverage, the employer is requ
