Maintaining Health Insurance Coverage After Losing Employment: The COBRA Subsidy under the American Reinvestment and Recovery Act of 2009

The American Recovery and Reinvestment Act (ARRA), also known as the federal stimulus package, includes a provision that helps laid off workers stay insured. A newly unemployed worker who meets certain criteria can maintain health insurance coverage under COBRA by paying just 35 percent of the cost of the monthly premium for up to nine months. The federal government will reimburse the employers for the remaining 65 percent of the cost of insurance.