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 ‘COBRA’
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 Subsidy Extended through March 2010
March 3, 2010Breaking news sources reported that the United States Senate passed legislation late in the day on March 2, 2010 to extend the federal partial subsidy of COBRA benefits. The previous extension of the COBRA subsidy had expired on February 28, 2010. The bill that includes the most recent extension of the COBRA subsidy had already [...]
More on the COBRA Subsidy Extension
February 4, 2010The 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 [...]
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.
