On December 19, 2009, a defense spending bill was signed into law which included an extension and expansion of the subsidy for COBRA health insurance premiums. COBRA is the law that allows former employees to keep their employer's health insurance for up to 18 months if they pay the premiums.

The stimulus law passed in February 2009 provided for up to nine months of government subsidy for 65% of the premium cost for workers who lost their jobs between September 1, 2008, and December 31, 2009.

The new law extended the 65% subsidy for an additional six months, giving a total of 15 months assistance. The law also extended the eligibility cut-off date from December 31, 2009, to February 28, 2010.

On March 2, 2010, President Obama signed into law H.R. 4691, a bill providing a 30-day temporary extension of the COBRA subsidy and a 30-day extension of unemployment benefits.

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