What is the new law about cobra health insurance?

Under the recently enacted federal stimulus package, known as the American Recovery and Reinvestment Act of 2009 (ARRA), certain eligible individuals may be entitled to a 65% reduction in their premium payment.

The qualified person pays 35% of the premium and the insurance carrier receives a tax credit reimbursement for the balance. This reduction only applies to premium payments made after February 16th, 2009 and lasts for a maximum of 9 months. To be eligible for this reduction you must have first been eligible for COBRA between September 1, 2008 and December 31st, 2009 due to involuntary loss of employment during this time period.