COBRA Administration

Eligibility Standards

To be eligible for the subsidy, an individual must meet the following criteria:

• The individual must experience a qualifying event that is an involuntary termination of employment.
• The qualifying event must take place between Sept. 1, 2008, and  May 31, 2010.
• The individual or couple's income must fall short of the income limitation.

Eligible individuals pay 35 percent of their COBRA premiums. The subsidy expires after 15 months or upon the date of the individual’s maximum period of continuous coverage required under COBRA or when the individual becomes eligible for other group health insurance or Medicare.

Individuals who fail to notify their plan sponsor when they are eligible for other coverage are subject to a penalty of 110 percent of the subsidy provided.