Employees who were laid off from September 1, 2008, through December 31, 2009, will be eligible for a 65% federal subsidy of their COBRA premiums under provisions in the massive economic stimulus bill.

President Obama signed the plan into law on February 17.

Beneficiaries would be entitled to the subsidy for up to 9 months or until becoming eligible for coverage in another employer's plan or for Medicare.

This relief would not be available to individuals with annual incomes exceeding $125,000 or couples with annual incomes exceeding $250,000.