- COBRA Premium Subsidy Extended Until May 31, 2010
- May 7, 2010 | Authors: Vincent M. Farisello; Howard K. Levine; D. Charles Stohler; Giovanna Tiberii Weller; Molree Williams-Lendor; Domenico Zaino
- Law Firms: Carmody & Torrance LLP - Waterbury Office ; Carmody & Torrance LLP - New Haven Office ; Carmody & Torrance LLP - Waterbury Office
President Obama recently signed the Continuing Extension Act of 2010 (H.R. 4851) (the “Act”). Provisions of the Act provide a third extension of the COBRA premium subsidy that was passed as part of the February 2009 economic stimulus bill.
The stimulus bill provided that employees who were involuntarily terminated between September 1, 2008 and December 31, 2009 would be entitled to a nine-month, 65% premium reduction subsidy for health insurance coverage under COBRA. The subsidy was extended by the 2010 Department of Defense Appropriations Act to cover involuntary terminations through February 27, 2010 and expanded to provide six additional months of subsidized coverage (as discussed in a previous Client Alert here). In March, the Temporary Extension Act of 2010 extended the deadline to March 31, 2010.
The Continuing Extension Act of 2010 now extends the deadline to May 31, 2010. As a result, employees who are involuntarily terminated between from April 1 to May 31 are eligible for the 15 month COBRA premium subsidy.