The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees and their families to continue health insurance coverage provided by their employer after they have lost their job or experienced a reduction in hours. However, COBRA coverage can be expensive, so the government offers a subsidy to help low-income individuals and families afford COBRA coverage.
The COBRA subsidy is available to individuals and families who meet certain income requirements. The subsidy is paid directly to the health insurance company on behalf of the individual or family, and it can cover up to 100% of the COBRA premium.