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ARTICLE · 14 MARCH 2010

COBRA Subsidy Extended Once Again

Duane Morris LLP
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By signing the Temporary Extension Act of 2010 (the "Act") into law on March 2, 2010, President Obama has once again extended the eligibility period for the COBRA premium subsidy.

United StatesEmployment and HR
Duane Morris
Duane Morris
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By signing the Temporary Extension Act of 2010 (the "Act") into law on March 2, 2010, President Obama has once again extended the eligibility period for the COBRA premium subsidy.

As we reported in our previous Alert, "COBRA Premium Subsidy Extended", the 65-percent COBRA premium subsidy was previously extended through February 28, 2010. The Act once again extends this eligibility period for an additional month, now through March 31, 2010. 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 March 31, 2010, and who elects the COBRA continuation coverage. However, the Act did not change the maximum period for receiving the subsidy, which remains at 15 months.

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