Its an early COBRABusters Christmas Gift From Congress!
<Updated 12/22/09: The US Senate approved and the President signed into law today the COBRA subsidy Extension as part of the 2010 Defense Appropriations Bill.>
The US House of Representatives today passed a surprise early Christmas gift for job seekers, passing a bill extending the COBRA Subsidy eligibility period for two months, and they extended the maximum COBRA Subsidy period from from nine months to 15 months.
The new COBRA Subsidy extension was attached to the Department of Defense Appropriations Act, 2010, which very few Congressmen from either party dare vote against. The bill now goes to the Senate, which is expected to pass the Defense Appropriations bill before the end of the year.
This means that employees who are terminated through the end of February 2010 will now be leigible for the 65% COBRA subsidy, and the maximum subsidy an individual can receive is now fifteen months of COBRA subsidy instead of a maximum of nine months.
Under the current law, those involuntarily losing their jobs after the end of 2009 would no longer be eligible for the subsidy. But under the new subsidy extension provision:
- The end date of eligibility for the ARRA subsidy changes from December 31, to February 28, 2010. , 2009
- The ARRA premium subsidy expands to 15 months, increased from current nine months.
- Those who have lost their subsidy by completing their nine months in November or later would be grandfathered in under the new legislation.
- Involuntary terminations that occur on or before February 28, 2010, would be eligible for the subsidy, regardless of when the individual’s COBRA eligibility period begins. This addresses a Congressional oversight in the original bill pertaining to December 31, 2009, qualifying events.
- Additional notices will be sent with information regarding the amendments to Assistance Eligible Individuals, as well as those who get terminated in January through February, 2010.
So if you are a job seeker and you’ve been stessed out about your COBRA subsidy ending, you can breathe a deep sigh of relief, and submit your check for January COBRA premium payment. Even if your insurance company makes you write the higher, unsubsidized COBRA premiums for January, you’ll get the extra payment applied towards your February premium payment, as it looks like a lock that the US Senate will pass the COBRA subsidy extension provision that is attached to the Defense Appropriation bill during the next couple of weeks, with the COBRA subsidy retroactive to December 31st.
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Wishing you and yours a happy holiday and a prosperous and employment-filled New Year in 2010.
–Mike Chapman
Endeavor Group Insurance, www.EndeavorGroup.net
Group Benefits Advisors, www.GroupBenefitsAdvisors.com
214-764-6315
