Skip to page content
Employee Benefits Security Administration

News Statement

Release Date: July 6, 2010
Contact Name: Gloria Della
Phone Number: 202.693.8664

Statement of Assistant Secretary Phyllis C. Borzi on the availability of the subsidy after May 31, 2010

Washington – Assistant Secretary of Labor Phyllis C. Borzi today issued the following statement regarding the Consolidated Omnibus Budget Reconciliation Act (COBRA) and the premium reduction under the American Recovery and Reinvestment Act (ARRA):

"ARRA provides a COBRA premium reduction for eligible individuals who are involuntarily terminated from employment through the end of May 2010. Due to the statutory sunset, the COBRA premium reduction under ARRA is not available for individuals who experience involuntary terminations after May 31, 2010. However, individuals who qualified on or before May 31, 2010 may continue to pay reduced premiums for up to 15 months, as long as they are not eligible for another group health plan or Medicare.

"Unless the sunset date is extended by Congress, individuals who lose their jobs after May 31, 2010 will not be eligible for the subsidy.

"Individuals who believe they have been incorrectly denied the subsidy may request the Employee Benefits Security Administration review their denial and issue a determination within 15 business days. The application to request a review is available at http://www.dol.gov/COBRA."

Subscribe to the dedicated webpage to get updates as new information about the COBRA subsidy becomes available.

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.