Under the signed bill, the 65% subsidy for COBRA premiums is now extended for individuals who lost their job from April 1, 2010, through May 31, 2010.
The House passed the legislation with a 289-112 vote and the Senate with a 59-38 vote.
H.R. 4851 also includes provisions that:
- Extends the period that unemployed individuals may file applications for Federal Emergency Unemployment Compensation (EUC) from April 5, 2010 to June 2, 2010.
- Extends from Sept. 4, 2010 to Nov. 6, 2010 the period in which individuals may claim and be paid EUC and also the period that individuals can qualify for the Federal Additional Compensation (FAC), (the extra $25 per weekly benefit amount on state and federal unemployment compensation).
- Extends the period the federal government will provide 100% reimbursement for weeks of regular federal extended benefit payments from April 5, 2010 to June 2, 2010, with the state option to continue the benefit extension period from Sept. 4, 2010 to Nov. 6, 2010.
The law also directs that EUC and FAC payments be paid for general revenue, and regular employment benefits will be deducted from the EUC account, which is funded with federal unemployment taxes paid by employers.
Although this is “yeat another extension,” Congress continues to consider adopting legislation that would provide for longer extension unemployment and COBRA premium subsidy benefits. The American Workers, State, and Business Relief Act of 2010 (H.R. 4213), for instance, would extend, if passed, benefits through the end of 2010.
However, just to clarify, the new COBRA Extension Bill, H.R. 4851, DOES NOT extend the length of COBRA (18 months), nor does it extend the number of months that the 65% COBRA subsidy is available (fifteen out of the 18 months, or 9 months for TX State Continuation).
And while Democrats are hopeful of approving a permanent extension to the subsidy until the year end of 2010 vs. piecemeal extensions every six weeks, an improving economy coupled with voter concern over federal deficits may make further extensions of the COBRA Premium Subsidy more difficule to pass through Congress.
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