The American Recovery and Reinvestment Act of 2009 (ARRA)

The Stimulus Package signed by President Obama changes COBRA.This requires employers to pay a 65% subsidy toward health care coverage premiums for up to 9 months; employers can deduct those costs from their Social Security and Medicare taxes.

This means individuals who have been involuntarily terminated between September 1, 2008 and December 31, 2009 will be eligible for the COBRA premium assistance, along with their family. This takes effect March 1st.