The American Recovery and Reinvestment Act of 2009 (ARRA), as amended on March 2, 2010 by the Temporary Extension Act (TEA) of 2010, provides for premium reductions through March 31, 2010 for health benefits under COBRA. The ARRA COBRA subsidy was previously set to expire on February 28, 2010. Under the ARRA COBRA subsidy, eligible individuals pay 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the employer providing the coverage through a tax credit. The premium reduction applies to periods of health coverage that began on or after February 17, 2009 and lasts for up to 15 months. To qualify, individuals must experience a COBRA-qualifying event that is the involuntary termination of a covered employee's employment. The involuntary termination must generally occur during the period that began September 1, 2008 and ends on March 31, 2010. As provided by TEA, an involuntary termination of employment that occurs on or after March 2, 2010, but by March 31, 2010, and follows a qualifying event that was a reduction of hours that occurred at any time from September 1, 2008 through March 31, 2010, is also a qualifying event for purposes of ARRA. The ARRA general notification is required to be provided to individuals covered by this change within 60 days of their date of termination. TEA also amends ARRA, effective March 2, 2010, to allow the DOL to assess a new $110-per-day penalty against a plan sponsor or health insurer who fails to comply with the DOL's determination made under expedited review procedures regarding an individual's entitlement to premium assistance. An additional extension beyond March 31, 2010 is likely to be included in pending legislation.