Latest News on COBRA Subsidies
Timothy D. Norton II
On March 2, 2010, President Obama signed H.R. 4691 Extension Act (Act) into law. The Act extended the eligibility period for federal subsidies for COBRA Continuation Coverage premiums, and it extended unemployment benefits for jobless Americans until April 5, 2010.
Under the Department of Defense Appropriations Act, the eligibility period for the subsidy expired on February 28, 2010 for individuals who were involuntarily terminated on or before that date. However, the Act applies retroactively and extends the subsidy period for individuals involuntarily terminated until March 31, 2010. The Act provides the same level of benefits as the Department of Defense Appropriations Act. The maximum period of the subsidy for COBRA premiums remains fifteen (15) months, and the 65% premium subsidy has not changed.
Employers can find more information on the Department of Labor’s website: http://www.dol.gov/dol/topic/health-plans/cobra.htm regarding the extension of COBRA. At the time of this Alert, Congress is presently hashing over a bill that would extend federal subsidies for COBRA health care premiums and unemployment benefits until the end of the year.
Please contact your CGA Employment Law attorney with questions regarding these developments.
