What is COBRA?

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows certain employees and their eligible dependents the opportunity to elect a temporary extension of health coverage, called “continuation” or “COBRA” coverage, at group rates in specific instances when coverage under the plan would otherwise end.

What is ARRA?

The American Recovery and Reinvestment Act of 2009 (ARRA), signed into law on February 17, 2009 provided premium reductions assistance to individuals whose qualifying event occurred on or after September 1, 2008 and before December 31, 2009 and was due to involuntary termination. The benefit was extended to all Assistance Eligible Individuals (AEIs) whose loss of coverage occurred no later than December 31, 2009 for a period of up to 9 months.

In December 2009 the ARRA Premium Subsidy was extended through the Department of Defense Appropriations Act of 2010. This Act extended the length of the subsidy for up to 15 months and extended eligibility for the Premium Subsidy to individuals whose qualifying event occurred on or after September 1, 2009 and before May 31, 2010 and was due to involuntary termination.

On March 2, 2010, the Temporary Extension Act of 2010 was signed by President Obama which further extended eligibility for the Premium Subsidy to individuals whose qualifying event occurred on or after September 1, 2009 and before March 31, 2010 and was due to involuntary termination. In addition, this Temporary Extension Act also expands the qualifying event definition for COBRA subsidy purposes.

It stipulates that for periods of coverage beginning after March 2, 2010, the Act provides that any individual who meets the requirements of an AEI, and has had a qualifying event for reduction in hours that is followed by an involuntary termination of employment during the time of September 1, 2008 and March 31, 2010 will also be eligible for the ARRA premium assistance subsidy.

On April 15, 2010, the Continuing Extension Act of 2010 was signed by President Obama and once again extended eligibility for the Premium Subsidy to individuals whose qualifying event occurred on or after September 1, 2009 and before May 31, 2010 and was due to involuntary termination. In addition, this Temporary Extension Act also expands the qualifying event definition for COBRA subsidy purposes as it relates to the reduction in hours clause. It stipulates that for periods of coverage beginning after March 2, 2010, the Act provides that any individual who meets the requirements of an AEI, and has had a qualifying event for reduction in hours that is followed by an involuntary termination of employment during the time of September 1, 2008 and May 31, 2010 will also be eligible for the ARRA premium assistance subsidy.

Determine if You Qualify for ARRA

Below is a breakdown of the questions and answers on the ARRA form that will help you determine if you are ARRA eligible:
1.	The loss of employment was involuntary.
	YES = ARRA Eligible NO = NOT ARRA Eligible
2.	The loss of employment occurred at some point on or after September 1, 2008 and on or before May 31, 2010.
	YES = ARRA Eligible NO = NOT ARRA Eligible
3.	If the loss of employment was both:
	A. Preceded by a qualifying event that was a reduction of hours that took place at some point between September 1, 2008 and May 31, 2010 AND B. The loss of employment occurred on or after March 2, 2010 but by May 31, 2010. YES or NA = ARRA Eligible NO = NOT ARRA Eligible (To make sure you answer question #3 correctly, confirm with your employer that your qualifying event was a reduction of hours followed by involuntary termination of employment, within the timeframes outlined in “A” & “B” above; if so, then the correct answer to this question is “YES.”)
4.	I elected (or am electing) COBRA continuation coverage.
	YES = ARRA Eligible NO = NOT ARRA Eligible
5.	I am eligible for other group health plan coverage (or I was eligible for other group health plan coverage during the period for which I am claiming a reduced premium).
	NO = ARRA Eligible YES = NOT ARRA Eligible
6.	I am eligible for Medicare (or I was eligible for Medicare during the period for which I am claiming a reduced premium).
	NO = ARRA Eligible YES = NOT ARRA Eligible

How to Complete an ARRA Form

With the recent ARRA extension under the Continuation Extension Act, the DOL has updated the ARRA form of Request for Treatment as an Assistance Eligible Individual.

Updated participant ARRA form (PDF)

 

How do I file an ARRA appeal with the Department of Labor?

For information on the DOL appeal process or if you believe you are eligible for ARRA, but you were denied for the premium reduction assistance, you may file for a review online with the DOL at www.dol.gov/ebsa/COBRA/main.html.

How do I appeal a termination of my COBRA eligibility or enrollment?

If you feel the non-commencement or termination of your benefits under the Federal COBRA regulations was in error, you have the right to file an appeal by writing a letter which explains why you believe the coverage should be reinstated.