COBRA Continuation Premium Subsidy

 Under the American Recovery and Reinvestment Act of 2009 (stimulus bill), certain individuals who are eligible for COBRA continuation health coverage (or similar coverage under state law), will receive a temporary subsidy for 65 percent of their  premiums. Although the subsidy is available starting March 1, many of the details still are being worked out by the Department of Labor, in particular, the notices that employers and employees are required to give each other. Those notices are to be available by March 17. The IRS has largely worked out the procedure for employers to be reimbursed for the subsidy. It is simpler than might have been expected.