The recent passage of the Emergency Unemployment Compensation Program Extension and Extended Benefits Temporary Provisions Extension did not extend the subsidy of COBRA benefits. Congress had previously extended the subsidy for COBRA benefits through May 31, 2010. The COBRA subsidy provided a 65% health insurance premium subsidy for up to 15 months to qualified employees [...]
Posted tagged ‘ARRA’
No New Extension of COBRA Benefits Subsidy
July 24, 2010COBRA SUBSIDY EXTENDED THROUGH MAY 31, 2010
April 20, 2010Congress has extended the subsidy for COBRA benefits through May 31, 2010. The previous extension of the COBRA subsidy had expired on March 31, 2010. The COBRA subsidy provides a 65% health insurance premium subsidy for up to 15 months to qualified employees who are involuntarily terminated from their employment between September 1, 2008 and [...]
COBRA EXTENSION PASSED
December 22, 2009The U.S. Employee Benefits Security Administration announced today that the COBRA premium subsidy eligibility period has been extended to cover qualified employees who lose their jobs through February 28, 2010. The time period for receiving the subsidy has also been extended from nine months to 15 months.
COBRA is a program that allows employees and their families to continue the health care insurance they received from their employers after their employment ends. Prior to the adoption of the COBRA subsidy, employees had to pay the full cost of their health insurance, 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. COBRA eligibility continues for a period of time after the subsidy ends, but employees will need to pay up to 102% of the costs of their coverage at that point.
Not all employees who are eligible for COBRA are eligible for the COBRA subsidy. For details, see www.dol.gov/cobra.
This posting is not legal advice, and should not be relied on for any purpose. It is a summary of a complex area of the law, which may have changed since this posting was written on December 22, 2009.
ARRA COBRA PREMIUM ASSISTANCE ENDING
December 12, 2009With the end of 2009 fast approaching, questions have arisen regarding COBRA premium assistance under the ARRA. COBRA premium assistance applies to qualified employees who involuntarily lose their jobs between September 1, 2008 and December 31, 2009. However, if the employee loses his or her job in December 2009 but does not become eligible for COBRA until January 2010, the employee will not be eligible for the premium assistance unless legislation is passed and signed into law extending this benefit.
Even though the program ends December 31, 2009, qualified individuals who become eligible before year end will be entitled to the full nine months of COBRA premium assistance as long as they continue to meet the eligibility requirements for the program.
