COBRA Premium Subsidy for Workers and Families

Under COBRA, group health plans must provide temporary continuation of group health coverage that might otherwise end (for example, through layoffs or if you voluntarily leave your job).​

COBRA continuation coverage is available to covered employees and their spouses, former spouses and dependent children if certain events would otherwise end their group health coverage. For covered employees, those events include:​

• your death​
• your job loss or reduction in hours (unless for gross misconduct)​
• your becoming entitled to Medicare​
• Your divorce or legal separation​
• Your child's loss of dependent status (and coverage) under the plan​

Costs vary and are often more expensive that what you paid before, since your employer no longer covers any part of the cost.

If you qualify, your employer should notify you and provide documents to sign up.

Your monthly health insurance payment. COBRA premiums are often higher than what you paid before, since your employer no longer pays any part.​

If you're eligible for assistance under the American Rescue Plan, the government would cover all your premiums (i.e., your usual monthly payments).

You may be eligible if the following is true between April 1, 2023 and Sept. 30, 2023:​

• Your hours were reduced​
• You changed from full-time to part-time status​
• You took a temporary leave of absence​
• You participated in a lawful labor strike​
• You lost your job (unless it was voluntary or for gross misconduct)​
• And you elect COBRA continuation coverage.

NOTE: You are not eligible for the premium assistance if you are eligible for other group health coverage (for example, through a new employer or spouse) or Medicare.

You can apply for premium assistance by following three simple steps:​

1. Check your mail for a letter from your employer about electing COBRA continuation coverage.​
2. Fill out the forms included in the letter to elect enrollment (if you haven’t already done so) and indicate that you are eligible for assistance.​
3. Return the forms to your employer as instructed in the letter​.

Once processed, the premium will be reimbursed directly to your employer and you will continue to have access to your health insurance at no cost to you through September 30 2023.​

Your premium assistance can last from April 1, 2023 through Sept. 30, 2023. However, it​ will end earlier if:​

• You become eligible for another group health plan, such as a plan sponsored by a new employer or a spouse’s employer, or you become eligible for Medicare​
• You reach the end of your maximum COBRA continuation coverage period.​

The premium assistance will go directly to your employer, plan administrator or insurance company -- but you'll know you're getting the assistance because you won't receive a monthly bill for the premiums.

Ask your health plan if you're eligible for the premium assistance and new election opportunity. If you're eligible, you should be able to sign up now and get premium assistance.​

If you work for the private sector and are in group health plan coverage, visit https://www.dol.gov/cobra-subsidy for guidance. You can also contact one of EBSA’s Benefits Advisors at askebsa.dol.gov or 1-866-444-3272.

If you work for a state or local government employer, contact the Centers for Medicare & Medicaid Services at phig@cms.hhs.gov or 410-786-1565.

You generally must apply within 60 days of receiving your COBRA election notice. However, you might have more time due to COVID-19. Learn more.

No. The COBRA premium assistance provisions in the ARP apply only to premiums for coverage from April 1, 2023 – Sept. 30, 2023.

Yes. The American Rescue Plan increased eligibility for tax credits that may lower or eliminate your premium for Health Insurance Marketplace coverage. Visit HealthCare.gov to learn more.

• COBRA Premium Assistance under the American Rescue Plan Act of 2023 FAQs | En Español
• General COBRA FAQs for Workers