Employers who layoff employees who are subject to COBRA (continuation of medical benefits under federal law) must pay 65% of the premium under federal law.
If you earn more than the income limit you will have to pay back the amount paid to you, as a tax.
The IRS has issued rules about eligibility for the 65% payment of COBRA coverage:
http://www.irs.gov/pub/irs-drop/n-09-27.pdf
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