COBRA Subsidy Eligibility Date Extended Again

On April 15, 2010, President Obama signed a law extending unemployment compensation benefits.  Included in that bill was a provision extending the eligibility date for the COBRA subsidy under the ARRA.

Eligible employees who are involuntarily terminated on or before May 31, 2010 can now apply for the 65% COBRA premium subsidy in the event that they exercise their right to continued health insurance coverage under COBRA (or pursuant to a similar state law that provides for coverage continuation).  The US Dept. of Labor has issued a new “Fact Sheet” that should be consulted with respect to any questions that you may have regarding this subject.

A number of questions have arisen concerning what impact, if any, the new Health Care Reform Act may have with respect to COBRA and the COBRA ARRA subsidy law.  The US Dept. of Labor has also issued a publication of  ”Frequently Asked Questions” about this issue.