The American Recovery and Reinvestment Act mandates a COBRA premium reduction for eligible individuals who were involuntarily terminated from employment through the end of May 2010. The COBRA premium reduction under ARRA is not available for individuals who experience involuntary terminations after May 31, 2010. However, individuals who qualified up to May 31, 2010 may continue to pay reduced premiums for 15 months, so long as they are not eligible for another group health plan or Medicare.
The Unemployment Compensation Extension Act of 2010 did not extend the COBRA premium reduction. Individuals who qualified up to 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. If your COBRA continuation coverage lasts for more than 15 months, you will need to pay the full amount to continue your COBRA coverage.
If you believe you have been denied the subsidy, contact the DOL and you may request the Employee Benefits Security Administration review the denial and issue a determination within 15 business days.