COBRA subsidy expanded again under CEA

On April 15th, President Obama signed into law H.R. 4851, the Continuing Extension Act of 2010 (CEA), which includes provisions expanding the COBRA subsidy to workers who lose their jobs during the months of April and May 2010. The law takes effect immediately.

Following two previous extensions and expansion to the COBRA subsidy originally enacted under the American Recovery and Reinvestment Act of 2009, CEA extends eligibility for the subsidy to those who involuntarily lose their jobs in April and May. The subsidy remains at 65% of the cost of the COBRA premium for a duration of 15 months.

Employers must notify assistance eligible individuals who might qualify for the subsidy no later than June 14, 2010. The COBRA election period for those who have not elected COBRA coverage must be extended to 60 days following the date of notification.

Details regarding COBRA coverage assistance under ARRA are available at www.dol.gov/cobra.

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For questions regarding the CEA, COBRA or any tax legislation, please contact your WK advisor at (573) 442-6171 or (573) 635-6196.

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