News Headlines Article

COBRA health subsidy extended for some
Sacramento Bee

Employees who lose their jobs during April or May could catch a break. Under new IRS regulations, they may qualify for a 65 percent subsidy on COBRA health insurance premiums for themselves and their families.

The new COBRA subsidy, an extension of benefits that had expired March 31 under the federal stimulus program, is for qualifying employees who pay 35 percent of their health care premiums through their former employer. The employer pays the remaining 65 percent and receives a federal tax credit in return.