This is part of the stimulus bill. Only for 9 months, but who is giving that these days? From the Boston Globe:

Starting March 1, 2009, anyone who loses their job between August 31, 2008 and December 31, 2009 can elect coverage under COBRA and 65% of their premium will be paid by the government for up to nine months. That's a huge savings considering the cost of coverage for a family can be $1,000 per month or more. For example, without this new break, a family would be responsible for paying the full monthly COBRA premium. Now, the family would pay only 35 percent or $350 per month. Over nine months, that is a total savings of almost $6,000.