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ARTICLE · 29 APRIL 2010

COBRA Subsidy Gets (Yet Another) Extension

On April 15, 2010, Congress passed the Continuing Extension Act of 2010, which will extend the period of time during which participants may become eligible for the COBRA subsidy program through the end of May.

United StatesEmployment and HR

Originally published April 21, 2010

Last Thursday, Congress passed the Continuing Extension Act of 2010, which will extend the period of time during which participants may become eligible for the COBRA subsidy program through the end of May.  

The COBRA subsidy program enables an "assistance eligible individual" (AEI) who pays 35% of the COBRA premium for health coverage continuation to have the remaining 65% paid by the coverage provider for up to fifteen months, who is then reimbursed through a tax credit. With the enactment of the new law, AEIs will be defined as employees (and their beneficiaries) who between September 1, 2008 and May 31, 2010 became eligible for COBRA continuation coverage due to an "involuntary termination" of employment or due to a reduction of hours that rendered the employee ineligible for the employer's health plan and who were later terminated involuntarily on or by May 31, 2010.

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