On March 2, 2010, President Obama signed into law further
amendments to the Consolidated Omnibus Budget Reconciliation Act
(COBRA) subsidy provision of the American Recovery and Reinvestment
Act (ARRA). These amendments not only expand the time that the
subsidy is available, but also contain an extension of the subsidy
to certain individuals whose reduced hours prior to their
involuntary termination may have previously rendered them
ineligible for the subsidy.
Extension of Subsidy
The bill extends the COBRA subsidy, which covers 65% of an
individual's portion of the premium, for involuntary
terminations occurring on or prior to March 31, 2010. The subsidy
had expired for post-February 28 terminations and was revived
through this month under this legislation. For more information
about the mechanics of the subsidy, see Littler's February 2009
ASAP,
Stimulus Package: An In-Depth Look at the New COBRA Subsidy in
the ARRA. As with other rules relating to the
