The Cobra Subsidy is ending August 31, 2011
The March 2009 Federal COBRA subsidy that mandated employers cover 65% of COBRA premiums for employees who were involuntarily terminated between September 2008 and May 2010 for a period of up to 15 months is ending August 31, 2011. This means that anyone receiving assistance through the subsidy will now be responsible for 100% of the COBRA premiums should they choose to continue coverage.
Some individuals may not be aware they’ll no longer be getting a subsidy. Employers are encouraged to send a notice to subsidy beneficiaries that their eligibility is coming to an end; however, there are no requirements of such notice in place.
There is currently no pending action from Congress that would extend the subsidy any further.