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Benefits Law
Alert
COBRA PREMIUM
SUBSIDY EXTENDED ONCE AGAIN
On March
2, 2010, President Obama signed into law the Temporary Extension Act
of 2010 (H.R. 4691) providing a 31-day extension of federal subsidies
of COBRA health care premiums as allowed under the American Recovery
and Reinvestment Act of 2009 ("ARRA") and as previously
amended by the Department of Defense Appropriations Act of 2010.
Eligibility
Period Extended to March 31, 2010
Under current law, an assistance eligible individual who
was involuntarily terminated from employment after February 28, 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 March 31, 2010, as long as the individual is entitled to
COBRA coverage as a result of an involuntary termination.
The maximum period for receiving the COBRA subsidy
remains at 15 months.
New Exception
for Reduction in Hours
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 March 31,
2010.
Future Changes
The Senate is schedule to begin debate this week on a
measure (H.R. 4213) that would further extend the COBRA ARRA 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 Temporary Extensions Act on the Department of Labor's
website at www.dol.gov.
If
you have any questions, please contact:
Ed
Hammond at 248.988.1821 or ehammond@clarkhill.com
John
Schneider at 616.608.1108 or jschnieder@clarkhill.com
or
Kristi Gauthier at 248.988.5854 or kgauther@clarkhill.com.
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