This is to inform local districts of the COBRA provisions of the American Recovery and Reinvestment Act of 2009 (ARRA) which provides for a reduction of premiums for health benefits under the Consolidated Omnibus Reconciliation Act of 1985 (COBRA).
Individuals who are eligible for COBRA coverage because of their own or a family member's involuntary termination from employment that occurred from September 1, 2008 through December 31, 2009, and who elect COBRA, may be eligible to pay a reduced premium. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the employer or health plan through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009, and lasts for up to nine months.
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