COBRA subsidy
expanded and extended

On December 19, 2009, President Obama signed into law H.R. 3326, the Department of Defense Appropriations Act of 2010, which includes provisions related to COBRA insurance for all workers. The law takes effect immediately.

H.R. 3326 includes an unemployment insurance eligibility extension and a six-month extension in the maximum COBRA premium subsidy period, from 9 months to 15 months. H.R. 3326 extends eligibility for the subsidy to those who lose their jobs during the first two months of 2010. The new law also includes transition period relief for eligible individuals who had reached the end of the reduced premium period before the law was signed. These individuals may elect to pay reduced COBRA premiums retroactively and thus maintain their COBRA coverage for the expanded subsidy period.

Employers should take note of the new notification requirements included in the law. H.R. 3326 requires the health plan administrator to provide additional notification about the new subsidy provisions to individuals who are eligible on or after October 31, 2009, and to individuals who experience a qualifying event relating to COBRA continuation coverage on or after that date.

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

CONTACT US

For more information on COBRA provisions, contact Debbie Mathes, CPA at (573) 442-6171.

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