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

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April 2010

Third COBRA Extension Passed

Late last night, Congress passed the third COBRA extension. It is heading to the President’s desk for signature this morning. After a last-minute Senate amendment, accepted by the House, eligibility for the 15-month, 65% subsidy was extended to individuals involuntarily terminated through May 31. Like the prior extensions, this third extension applies to both federal COBRA and state mini-COBRA laws, and is retroactive, so that any individuals terminated between March 31 and May 31 are covered. Employers should expect another revised notice from the Department of Labor to be released shortly, which they will need to send to workers involuntarily terminated after March 31.

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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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