COBRA Premium Subsidy Period Extended to May 31, 2010
May 3rd, 2010
President Obama signed the Continuing Extension Act of 2010 (H.R. 2851) that extends the 15-month COBRA premium subsidy program. Under this extension, an individual may qualify for the subsidy if he or she experiences a COBRA qualifying event, which is the involuntary termination of a covered employee's employment, at any time from September 1, 2008 through May 31, 2010. An involuntary termination of employment which occurs on or after March 2, 2010 but by May 31, 2010, and which follows a qualifying event that was a reduction of hours occurring at any time from September 1, 2008 through May 31, 2010, is also a qualifying event for the COBRA subsidy.
Updated COBRA model notices, a Fact Sheet, and Answers to Frequently Asked Questions are available at the Department of Labor's Web site.
Filed Under: Business Law