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Unemployed Health/Wellness
July 7, 2010 Fired after May 31 this year? You won't qualify for the signficant COBRA subsidy provided by the American Recovery and Reinvestment Act (ARRA) even though you are probably eligible for COBRA due to the inaction of congress, allowing the COBRA Premium subsidy to sunset. Americans who qualified on or before May 31, 2010 may continue to pay reduced premiums for up to 15 months, as long as they are not eligible for another group health plan or Medicare.
Unless the sunset date is extended by Congress, individuals who lose their jobs after May 31, 2010 will not be eligible for the subsidy. According to a statement released today by the Department of Labor.
Through the subsidy, eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit.