American Recovery and Reinvestment Act (ARRA)
The American Recovery and Reinvestment Act (ARRA) has been extended to cover involuntary terminations through March 31, 2010.
ARRA provides eligible individuals a 65 percent subsidy for COBRA or State Continuation premiums.
To qualify, generally, individuals must have been involuntarily terminated between Sept. 1, 2008 and March 31, 2010, and must meet certain income limits. There is a new rule that provides for the extension for eligible individuals who lost coverage on/after Sept. 1, 2008 due to a reduction in hours followed by an involuntary termination of employment between March 2, 2010 and March 31, 2010. For a full description of eligibility, view the U.S. Department of Labor website.
Involuntary termination does not include termination for gross misconduct. Spouses and eligible dependents may also be eligible for the subsidy.
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