COBRA Subsidy Extended Through May 31, 2010
April 23, 2010
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On April 15, 2010, President Obama signed legislation extending through May 31, 2010, the eligibility period for the COBRA premium subsidy program created by the American Recovery and Reinvestment Act of 2009 (ARRA). Before this latest extension, the eligibility period for the COBRA subsidy expired on March 31, 2010. The new extension applies retroactively to cover any employee who has been involuntarily terminated since April 1, 2010.
Under the ARRA and amendments, eligible individuals may maintain COBRA health insurance coverage for up to 15 months at 35% of the normal COBRA premium amount. For background information on the COBRA subsidy, see our February 25, 2009 and February 2, 2010 alerts.
We expect that the U.S. Department of Labor (DOL) will revise its model notices and guidance on the COBRA subsidy program in light of this extension; check the DOL’s website for updates. Also, employers should anticipate that there will likely be further extensions of the COBRA subsidy in 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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