In a development which has come as a good news to all employees who had lost their jobs as a result of recession, the Government has decided to extend its COBRA scheme, which is a federal subsidy under which laid off employees can continue to maintain their employer backed healthcare benefits.

On Monday, President Barack Obama singed a measure which confirmed the extension.

COBRA, or Consolidated Omnibus Budget Reconciliation Act, lets workers who have been a part of involuntary job cuts retain their employer's group health plan for a maximum of 18 months, or maybe longer under certain circumstances, on a condition that they pay the complete premium as well as an administrated fee. With the subsidy offered, laid off employees pay only 35% of the total monthly premium and the rest is provided by the Government.

Eligibility for the scheme, which was earlier set to expire on December 31, has now been extended to terminated workers between January 01 to February 28, 2010, in addition to those who were let go under the previously set dates.

As per figures shared by benefits consultant Hewitt Associates over 14 million employees are expected to be now eligible for the scheme.

Under the bill, employers are required to notify all current and future COBRA eligible employees of the 15 month extension in eligibility. All participants and employers who have any questions are being encouraged to call the US Department of Labor at 866-444-3272 or visit dol. gov/cobra.