A little-noticed provision of the stimulus bill signed last month by President Barack Obama may give the growing ranks of unemployed workers some relief with their medical bills.

The subsidy is available to employees who lose their jobs from September 1, 2008, through December 31, 2009. Even employees or family members who initially declined COBRA coverage are eligible for the subsidy: Employers must give them a second chance to elect COBRA coverage by sending them notice of the new rules. Those who might otherwise be subject to a pre-existing condition exclusion may also be able to enroll, because the new law provides that the period of time between the original job loss that entitled the person to COBRA and the first COBRA coverage period after the ARRA was enacted doesn’t count as a break in coverage.

This is for companies with 20 or more employees and that are still in business.

Who qualifies for the subsidized COBRA insurance?

Those who were involuntarily laid off after Sept. 1, 2008, and through Dec. 31, 2009.

In addition, people who were involuntary terminated between Sept. 1 and Feb. 16 who did not elect COBRA when it was first offered or who did elect COBRA but are no longer enrolled (for example, those who dropped COBRA coverage because they were unable to continue paying the premium) have a second opportunity to sign up.

Individuals eligible for the extended COBRA election period should receive a notice by April 18 informing them of this opportunity. They then have 60 days to elect COBRA.