Aetna announced that on August 7, 2009 they will send a notice to former employees of their small business clients, terminated from employment between September 1, 2008 and May 10, 2009, advising them that they may be eligible for the Federal Subsidy for COBRA continuation of their health insurance. Aetna is using the California Department of Managed Health Care’s model COBRA Subsidy Notice as their guide.
The notice informs employees that they may be eligible for a nine-month – 65 percent subsidy of the COBRA or CalCOBRA premium for medical insurance if they were involuntarily terminated from employment between September 1, 2008 and December 31, 2009. The subsidy is as a result of the American Recovery and Reinvestment Act (ARRA) signed into law February 17, 2009. Here is advice for employers wanting more information on the COBRA subsidy. Here is advice for employees seeking information on the COBRA subsidy.