Deadline nears on COBRA Premium Subsidy

The extended two-month eligibility period for the premium subsidy program is set to end this Sunday, Feb. 28, 2010.  This means that workers involuntarily terminated starting March 1 will not be eligible to receive the 65 percent premium reduction of COBRA or state continuation benefits.

Many believe there is Congressional support for extending the premium subsidy eligibility period again, and expect consideration of the issue in coming weeks.

My hope is that any extension will be passed before the eligibility period ends this Sunday, to avoid another retroactive benefits period. As of this morning, the House has passed a voice vote to extend the subsidy by one month. It now goes to the Senate, but isn’t expected to pass before week’s end.

Either way, I will endeavor to keep you informed as changes occur. The premium subsidy implementation workgroup will quickly evaluate any new requirements and address the operational processes necessary for compliance, should any further extension be approved.

Mike Chapman

214-764-6315