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ARTICLE · 06 DECEMBER 2009

COBRA Premium Subsidy Extended

Duane Morris LLP
Duane Morris LLP
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Ending months of speculation, President Obama extended the COBRA premium subsidy period by signing into law the Department of Defense Appropriations Act, 2010 (the "Act") on December 19, 2009.

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Ending months of speculation, President Obama extended the COBRA premium subsidy period by signing into law the Department of Defense Appropriations Act, 2010 (the "Act") on December 19, 2009.

As we reported in our Alert, Stimulus Bill Includes Significant COBRA Changes, the 65-percent COBRA premium subsidy was scheduled to expire on December 31, 2009. The Act extends this eligibility period for an additional two months—through February 28, 2010—and also extends the maximum period for receiving the subsidy from nine to 15 months.

In light of the Act, the definition of "assistance eligible individual" now covers a qualified beneficiary who was involuntarily terminated during the period from September 1, 2008, through February 28, 2010, who is eligible for COBRA continuation coverage at any time during that period, and who elects the COBRA continuation coverage.

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