COBRA Subsidy Extended to May 31,
2010
On April 15, 2010,
President Obama signed H.R. 4851, known as the "Continuing Extension
Act of 2010" into law. The Act included an extension of unemployment
benefits as well as an extension and improvement of premium assistance for
COBRA benefits. The extension of COBRA benefits is effective immediately
and retroactive to April 1, 2010.
Prior to the enactment of
this bill, COBRA premium assistance was not available to anyone terminated
after March 31, 2010 due to the expiration of the previous extensions. This
most recent extension will immediately allow those who experience one of
two types of qualifying events to be considered an assistance-eligible
individual for purposes of the COBRA premium assistance. The first qualifying
event is an involuntary termination of employment through May 31, 2010. The
second qualifying event is a reduction in hours followed by an involuntary
termination of employment if that involuntary termination occurs on or
after March 2, 2010, and on or before May 31, 2010.
Although the Act was not
passed until April 15, 2010, the legislation includes language for
retroactive eligibility for those who experienced an involuntary
termination of employment on or after April 1, 2010.
As with previous extensions,
those who are assistance eligible individuals will be eligible for up to 15
months of reduced premiums.
If the Department of Labor
provides revised Model Notices reflecting this newest extension, we will
update you with the necessary information.
Click here for more information.
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