COBRA Premium Subsidy Provisions by Kimberly I. McCarthy, Esq.


March 2010

COBRA Extension; 31 Days

President Obama signed into law a 31-day extension, which makes individuals involuntarily terminated between March 1 and March 31 eligible for the 15-month, 65% subsidy. Without this stopgap measure, eligibility would have ended February 28. Individuals terminated between February 28 and the date the law was enacted (March 2, 2010) are protected.

An additional extension of the subsidy through the end of this year is still being considered as part of the larger jobs bill. As written, the bill would extend eligibility through December 31, 2010, but would not extend the timeframe for receiving the subsidy past 15 months. The bill also proposed more stringent requirements re: proof that an employee was involuntarily terminated, such as an attestation from the employer in the individual's personnel file. Action is expected on this bill in the very near future.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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