COBRA Stimulus


See this page for current information

California Cal-COBRA 36 months total coverage

If you lost your job involuntarily between 9/1/2008 and May 31,2010 ( you might be able to get a 65% credit on your COBRA premium under the Stimulus American Recovery and Reinvestment Act. ARRA CAL COBRA Qualifies too DOL Blue Cross Summary

Consumer Links

Other Options for Help with Premiums

Blue Cross/Anthem Procedures COBRA Subsidy Action Plan   and Compliance Update 

Blue Shield FAQ

Aetna FAQ


United Healthcare Playback WebEx or  View Presentation Slides Text Summary (Broker Only)

 IRS Info

Warner Pacific Links provide detailed information. .

Department of Labor Website


Health Net  simply repeats the links above

PacifiCare – United EServices info

Get Quotes for the Healthy Members of your Family


Q17: My health coverage was terminated when my employer shut down and laid off all its workers. Can I get the premium reduction to pay for new health coverage?

The premium reduction is available to help qualified individuals pay for COBRA continuation health coverage. If there is no longer a health plan, there is often no COBRA coverage available, unless another related or successor employer sponsors a group health plan responsible for providing continuation coverage to you.

Q25: How can I get more information on my eligibility for COBRA or the premium reduction?

Guidance and other information is available on the Department of Labor web site at You can also call 1.866.444.3272 to speak to an Employee Benefits Security Administration Benefits Advisor.

Information about ARRA’s premium reduction provisions is also available from the IRS and the Department of Health and Human Services, which, along with the Department of Labor, share responsibility for COBRA and the new requirements added by ARRA.

What does Involuntary Termination of Employment mean?

An involuntary termination means a severance from employment due to the independent exercise of the unilateral authority of the employer to terminate the employment, other than due to the employee’s implicit or explicit request, where the employee was willing and able to continue performing services.
(employer law

Involuntary termination is a termination at the direction of the employer . . . termination for gross misconduct will generally disqualify an employee and his/her family from COBRA coverage.?

the IRS guidelines state that an “involuntary termination” could be a termination for good reason due to employer action that causes a material negative change in the employment relationship for the employee.  “involuntary termination” could include a situation in which an employer failed to renew a contract if the employee was willing and able to continue with a new contract with similar terms and conditions.

The federal continuation coverage requirements disqualify individuals for continuation coverage if they were terminated from employment for reasons of  gross misconduct (e.g., fraud) (see: 5 U.S.C. ?8905a, 29 U.S. C.
?1163, and 42 U.S.C. ?300bb-3).

( Notice 2009-27

Q. What individuals are eligible for the COBRA subsidy?

A. An assistance-eligible individual can be any COBRA qualified beneficiary associated with the related covered employee, such as a dependent child of an employee, who is covered immediately prior to the qualifying event. The qualifying event for purposes of eligibility for the subsidy is involuntary termination of the covered employee’s employment that occurs during the period beginning Sept. 1, 2008, and ending Dec. 31, 2009. The individual must also be eligible for COBRA coverage, or similar state coverage, during this period. (02/26/09)

(10) DEFINITIONS.—For purposes of this section—

(B) COBRA CONTINUATION COVERAGE.—The term ‘‘COBRA continuation coverage’’ means continuation coverage provided pursuant to part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (other than under section 609), title XXII of the Public Health Service Act, section 4980B of the Internal Revenue Code of 1986 (other than subsection (f)(1) of such section insofar as it relates to pediatric vaccines), or section 8905a H. R. 1—347 of title 5, United States Code, or under a State program that provides comparable continuation coverage. Such term does not include coverage under a health flexible spending arrangement under a cafeteria plan within the meaning of section 125 of the Internal Revenue Code of 1986.

H. R. 3326-64

Sec. 1010. (a) Extension of Eligibility Period.—Subsection (a)(3)(A) of section 3001 of division B of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) is amended by striking “December 31, 2009” and inserting “February 28, 2010”.

(b) Extension of Maximum Duration of Assistance.—Subsection (a)(2)(A)(ii)(I) of such section is amended by striking “9 months” and inserting “15 months”.

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