Atlanta, GA – Thursday, March, 2009

On February 17, 2009, President Obama signed into law H.R. 1, the American Recovery and
Reinvestment Act of 2009 (ARRA). Among many other provisions designed to encourage economic
recovery, Title III of ARRA expands the federal Consolidated Omnibus Budget Reconciliation Act
(COBRA) Continuation Coverage to provide a 65 percent federal subsidy toward an eligible worker’s
COBRA premium for up to 9 months. The provisions in ARRA providing this subsidy are effective as of
the date of the President’s signing.

Download a brief summary of the newly enacted COBRA subsidy below.

Understanding the COBRA Premium Subsidy (The American Recovery and Reinvestment Act of 2009

Where Can I Get More Information?
The U.S. Department of Labor is required to issue model COBRA Notices that comply with the
requirements of the ARRA within 30 days following enactment (i.e., by March 19, 2009).
For a copy of the new law, ARRA, see: http://thomas.loc.gov/cgi-bin/bdquery/z?d111:h.r.00001:
For general information regarding COBRA, see: http://www.dol.gov/dol/topic/health-plans/cobra.htm
Your Pritchard & Jerden representative is also available to assist you with any questions.