For the third time, the COBRA premium subsidy program has been
extended, this time through May 31, 2010, under the Continuing
Extension Act of 2010 (Act).1 The key provisions of the
Act include:
- The extension of the eligibility period for the COBRA subsidy
through May 31, 2010.
- A new special election period and related notice requirement
for individuals who experience a qualifying event that is related
to a termination of employment on or after April 1, 2010, and
before April 15, 2010.
Special Election Period
A health plan must extend a special COBRA election period to an
individual who experienced an involuntary termination of employment
on or after April 1, 2010, and prior to April 15, 2010, and who
would be an "assistance eligible individual" (AEI) but
who does not have a COBRA election in effect on April 15, 2010. The
special election period runs from April 15, 2010, through the date
60 days after the Notice of Special Election Period is provided
