COBRA Premium Subsidy - Questions & Answers

Under the American Recovery and Reinvestment Act of 2009 (ARRA), certain individuals who are eligible for COBRA continuation health coverage, or similar coverage under State law, may receive a temporary subsidy of 65 percent of the COBRA premium. These individuals are required to pay only 35 percent of the premium. The Internal Revenue Service (IRS) has issued the following Questions and Answers regarding eligibility and taxability for employees and former employees.