The law signed this week offers workers who have lost their jobs since September a 65 percent COBRA subsidy. But not everyone will qualify or take advantage of this steep discount. You need to meet all the requirements and it may not be your best option. There may be a better option for health insurance that will not increase rates 65% in 9 months, but will lock you in your low rate for a year. Also with the rising costs of group health insurance, many companies have gone away from offering the traditional group plan benefits. Can you guarantee that your new job will offer those benefits for you?

Here are the COBRA subsidy facts and requirements:

-The 65 percent subsidy is only available for workers who were laid off between September 1, 2008 and the end of 2009. The subsidy does not apply to COBRA because of divorce or voluntary departure from a company. (Any voluntary termination: early retirement, buy-out packages, companies ending benefits, etc. will not qualify). Workers who were laid off before September are ineligible so the program’s cost can be kept under control.

-Employees who declined COBRA after September 1 must be notified by their former employer that they can choose to enroll now and receive the subsidy.

-The subsidy is available for 9 months, beginning in March. To qualify, income can’t exceed $125,000 for individuals or $250,000 for married couples in the year the subsidy is received.

-Employees will automatically receive a discounted bill. The former employer will receive a tax break to cover the subsidy.

-A provision was struck from the legislation that would have allowed older workers or employees with 10 or more years at a company to continue COBRA until they qualified for Medicare.

-The subsidy expires once a person qualifies for health coverage from another employer.