COBRA Subsidy Extended Through March 31, 2010
March 10, 2010
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On March 2, 2010, President Obama signed legislation once more extending the COBRA premium subsidy program first created last year by the American Recovery and Reinvestment Act of 2009 (ARRA). Now, individuals involuntarily terminated between September 1, 2008 and March 31, 2010 are eligible to receive the COBRA premium subsidy. The new legislation also clarifies that individuals who experienced a COBRA-qualifying reduction of hours after September 1, 2008 and who are involuntarily terminated between March 2, 2010 and March 31, 2010 are eligible for the COBRA subsidy.
Originally, under the ARRA, the 65 percent COBRA premium subsidy was only available to individuals involuntarily terminated between September 1, 2008 and December 31, 2009 and was only available for up to nine months. Then, in December 2009, the ARRA eligibility period was extended through February 28, 2010, and the assistance period was increased from nine to 15 months. (For background information on the COBRA subsidy, see our February 25, 2009 and February 2, 2010 alerts.)
It is expected that the U.S. Department of Labor (DOL) will revise its model notices and guidance on the COBRA subsidy program to reflect the new provisions; check the DOL’s website for updated information. Employers should also note that there could be further extensions of the subsidy during 2010.
Miller Law Group exclusively represents business in all aspects of California employment law, specializing in litigation, risk management, wage and hour class actions, ERISA litigation, and appellate law. If you have questions about your workplace obligations, please contact Michele Ballard Miller (mbm@millerlawgroup.com) or Carolyn Rashby (cr@millerlawgroup.com), or call (415) 464-4300.
This Alert is published by Miller Law Group to review recent developments in employment law. This material is designed to provide informative and current information as of the date of the Alert, and should not be considered legal advice.
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