Under the American Recovery and Reinvestment Act of 2009, certain individuals who are eligible for COBRA continuation health coverage, or similar coverage under state law, may receive a subsidy for 65 percent of the premium. These individuals are required to pay only 35 percent of the premium. The employer may recover the subsidy provided to assistance-eligible individuals by taking the subsidy amount as a credit on its quarterly employment tax return. The employer may provide the subsidy — and take the credit on its employment tax return — only after it has received the 35 percent premium payment from the individual.

Review our question and answer pages to find the information you need on: 

• Administration and eligibility
• Form preparation
• Reporting and documentation
• Taxability and recapture

Visit the Department of Labor Web site for information related to COBRA eligibility and the subsidy. Benefits advisors are also available to assist you at 1-866-444-3272.

Return to:

•  COBRA Health Insurance Continuation Premium Subsidy.
•  IRS Information Related to Tax Provisions in the American Recovery and Reinvestment Act of 2009.