The ARRA (American Recovery and Reinvestment Act of 2009) provided a COBRA subsidy which was due to expire on December 31,2009.  That subsidy has now been extended to February 28, 2010.   An employee who is involuntarily terminated on or before February 28, 2010, may elect to participate in COBRA continuation coverage and pay only 35% of the COBRA premium. The federal government will reimburse the employer the 65% that the employer paid. AGI limits for participation in the subsidy continue unchanged.  The timeframe that eligible individuals are entitled to the COBRA subsidy has been expanded from 9 months to 15 months.