Extended through Defense Appropriations Bill
Date:
December 24, 2009
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$6.00 billion
Amount Spent:
$6.00 billion
Deficit Impact:
$6.00 billion As part of the Department of Defense appropriation bill passed in late December 2009, $6 billion was provided for COBRA health insurance subsidies. Under the bill, COBRA subsidies of 65% were expanded from nine to 15 months for recently unemployed workers, bringing the new eligibility threshold date to February 28, 2010.
Extended COBRA subsidies were originally passed as part of the American Recovery and Reinvestment Act.
Notes:
Updated estimates from CBO now project lost revenues from the COBRA subsidy to equal $6 billion over the 2010 -2011 period.