President Obama Extends COBRA Subsidy for Unemployed Workers Again


Last night, President Obama signed into law the Temporary Extension Act of 2010, which among other provisions, includes a further extension of the federal COBRA subsidy created by the American Recovery and Reinvestment Act of 2009 (“ARRA”). Under ARRA, employees who were involuntarily terminated between September 1, 2008 and December 31, 2009 are entitled to a government subsidy of 65% of the premium cost for health care continuation coverage under COBRA for a period of nine months. In December 2009, the 2010 Department of Defense Appropriations Act extended coverage to employees who lost their jobs between December 31, 2009 and February 28, 2010. It also expanded the total allowable time during which an individual may receive the COBRA subsidy from nine months to fifteen months. The Temporary Extension Act of 2010 provides for an additional month of coverage, meaning that employees who involuntarily lose their jobs between February 28, 2010 through March 31, 2010 will be entitled to the premium subsidy.

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