More on the COBRA Subsidy Extension
The United States Department of Labor Employee Benefits Security Administration (EBSA) is continuing the administrative work necessary to implement the recent extension of the COBRA benefits subsidy. As you may recall, in late December 2009, the COBRA subsidy was extended to qualified employees who lose their jobs through February 28, 2010 and the time period for receiving the subsidy was extended from nine months to 15 months. Prior to the adoption of the COBRA subsidy, qualified employees who lost their jobs had to pay up to 102% of their health insurance premium, which was prohibitive for many unemployed workers. Employees who qualify for the subsidy only need to pay 35% of the premium amount during the subsidy period.
On February 3, 2010, the EBSA announced that it has posted the COBRA Premium Reduction Fact Sheet in Spanish, the COBRA Model General Notice in Spanish, the COBRA Poster in Spanish, the COBRA Flyer for Employees in Spanish, the COBRA Flyer for Employers in Spanish, and the COBRA Flyer for Employees on Application for Review in Spanish.
There has been no word yet on whether the COBRA benefits subsidy will be extended to cover employees who become eligible for COBRA after February 28, 2010. The proposed federal budget for fiscal 2011 includes an extension of the COBRA subsidy through December 31, 2010, with a proposal that the subsidy last for 12 months. Also, an extension of the COBRA subsidy is said to be part of a job bill proposed by Senate Democrats. Keep in mind that an extension could be adopted after February 28, 2010 and made retroactive. For that reason, it is important to keep post-employment contact information for former employees who may be eligible for COBRA benefits in case there is a need to give them notice of an extension of this program at some point in the future.
This posting is a brief summary only and is not legal advice and should not be relied on for any purpose. Please be aware that the law may have changed after this posting was written on February 4, 2010.
