Another Thirty Day COBRA Subsidy Extension Signed Into Law Helps Those Involuntarily Terminated Through End of March 2010

This week President Obama signed the Temporary Extension Act of 2010, after the Senate voted to pass the measure. 

The Act, generally referred to as an extension of unemployment benefits, also extends eligibility for the 65% COBRA subsidy to individuals who have involuntary terminations through March 31, 2010. Eligibility had expired for terminations after February 28, 2010. The law is retroactive, so that persons who were involuntarily terminated on March 1 and 2, are eligible for the subsidy. No other changes in the terms of the COBRA subsidy were made.

Employers and other health plan sponsors should adjust their COBRA notices to reflect the March 31, 2010 subsidy eligibility expiration date.

There is no indicationat that another extension will be approved by Congress and signed into law beyond April 1, 2010, but as of now,  I wouldn’t bet against it.

Feel free to contact me if you have any questions regarding this new legislation.

Mike Chapman

214-764-6315