COBRA Subsidy Extended

The temporary federal COBRA subsidy initially provided by the American Recovery and Reinvestment Act of 2009 was first extended to apply to involuntary terminations of employment through February 28, 2010. Eligibility for the subsidy has now been extended by the Temporary Extension Act of 2010 and the Continuing Extension Act of 2010 (together, the "Acts") to apply to losses of health insurance coverage in connection with involuntary terminations occurring on or before May 31, 2010, as well as to certain losses of health insurance coverage in connection with a reduction in hours that are followed by an involuntary termination of employment. The rules regarding the subsidy provisions prior to the Acts are summarized in Goodwin Procter's February 20, 2009 and December 23, 2009 Employee Benefits Updates.