COBRA Subsidy Ends — For Most

The federal COBRA subsidy officially ended on Aug. 31, but some employees might continue to receive the subsidy, depending on when their COBRA benefits kicked in.

Kaiser Health News noted in a recent report that the 65 percent subsidy was extended by Congress on several occasions, with the last extension covering employees laid off through May 31, 2010. The Department of Labor, however, recently noted that some employees who were let go after that date could still qualify to receive the subsidy.

For example, if a terminated employee was allowed to remain on the employer’s plan for a period of time, their subsidy eligibility would start only after the employer-sponsored coverage ended. Therefore, a worker could be laid off after May 31 but still have a portion of the maximum 15 months available for the subsidy.


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