House Likely to Vote on COBRA Subsidy Extension Today

[Duer 157099]

This was included in the Defense Spending Bill that passed today; should be extreme relief for lots of people!

http://employmentlawpost.com/hrnews/2009/12/16/cobra-subsidy-extension-provisions-likely-to-be-enacted-as-part-of-dod-appropriations-act/

If enacted in its current form, the provision would:

1. Change the end date of eligibility for the American Recovery and Reinvestment Act’s (ARRA) COBRA subsidy from December 31, 2009, to February 28, 2010.
2. Expand the ARRA’s COBRA premium subsidy period to 15 months (from the current nine months).
3. Allow a period for the retroactive payment of premiums for assistance-eligible individuals (i.e., individuals who were entitled to the subsidy) whose subsidy period expired on November 30 and who failed to pay their premium for December coverage. The retroactive period is 60 days, commencing with the enactment of the provision or, if later, 30 days after provision of the notice described below in bullet (4). The same refund/credit rules under the original bill apply to any assistance-eligible individual whose subsidy expired in November and who has since paid the full COBRA premium.
4. Require a special notice to all assistance-eligible individuals who are on COBRA on or after November 1 or whose qualifying event is a termination of employment occurring on or after November 1 describing the new 15-month premium subsidy. Note: Going forward, most administrators will incorporate this additional notice in their standard COBRA package.
5. Address an issue with regard to the original COBRA subsidy (i.e., both the qualifying event and the 18-month COBRA period must commence before the original sunset date of December 31) by conditioning eligibility for the COBRA subsidy only on a qualifying event that is the involuntary termination of employment occurring on or before the new February 28, 2010, sunset date, without regard to when the COBRA coverage period begins. Thus, for employers providing subsidized coverage that defers the COBRA start date, the 15-month period (which is applicable only to the COBRA period) may not commence until well into the future.

[sandyj999]

1. This would be wonderful news!

We are under ARRA COBRA subsidy now and it is the only way my unemployed husband can have any coverage.