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ARTICLE · 06 JANUARY 2010

COBRA Subsidy Extension

This amendment is effective immediately, and requires employers to notify certain current and future COBRA participants of the extended 15-month eligibility.

United StatesEmployment and HR

This amendment is effective immediately, and requires employers to notify certain current and future COBRA participants of the extended 15-month eligibility.

On December 19, 2009, President Obama signed the extension of the American Recovery and Reinvestment Act of 2009 (ARRA) COBRA Premium Subsidy into law under the Department of Defense Appropriations Act for Fiscal Year 2010. The extension provisions are located in a House Amendment to the Senate Amendment to H.R. 3326. This amendment is effective immediately, and requires employers to notify certain current and future COBRA participants of the extended 15-month eligibility.

What Has Changed?

Prior to this legislation, an Assistance Eligible Individual (AEI) was required to have been involuntarily terminated from employment between September 1, 2008, and December 31, 2009. Now, an AEI is required to have been involuntarily terminated from employment between September 1, 2008, and February 28, 2010.

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