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Benefits Law
Alert
COBRA PREMIUM SUBSIDY NOW EXTENDED THROUGH MAY 31,
2010
On April 15, 2010, President Obama signed into law the
Continuing Extension Act of 2010 (H.R. 4851) (the "Act"),
which provides another extension for the federal COBRA premium
subsidy as originally provided under the American Recovery and
Reinvestment Act of 2009 and as previously amended by both the
Department of Defense Appropriations Act of 2010 and the Temporary
Extension Act of 2010.
Eligibility
Period Extended to May 31, 2010
Under current law, an assistance eligible individual who
was involuntarily terminated from employment after March 31, 2010 was
not eligible for the federal COBRA premium subsidy. The Act
extends the eligibility period to include individuals involuntarily
terminated during the period that begins with September 1, 2008 and
ends on May 31, 2010.
The maximum period for receiving the COBRA subsidy
remains at 15 months.
Exception for
Reduction in Hours Retained
The Act also provides that an individual will be
eligible for the COBRA subsidy if he or she experiences an
involuntary termination that occurs on or after March 2, 2010 which
follows an initial COBRA qualifying event that was a reduction of
hours occurring at any time from September 1, 2008 through May 31,
2010.
Future Changes
There is currently a bill in the House that would
further extend the COBRA premium subsidy through December 31,
2010. Clark Hill PLC will continue to keep you updated as
future legislative changes are passed.
You can obtain a copy of the Continuing Extension Act on
the Department of Labor's website at www.dol.gov.
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