Another Extension of COBRA Premium Subsidy
| Abbreviations Key |
| COBRA: Consolidated Omnibus Budget Reconciliation Act of 1985 |
| DOL: Department of Labor |
| ARRA: American Recovery and Reinvestment Act of 2009 |
Through the
Temporary Extension Act of 2010, lawmakers extended the 65 percent COBRA reimbursement coverage originally included in the 2009 ARRA (also known as the stimulus act). Participants in employer-sponsored health plans who are involuntarily terminated can now receive the subsidy through March 31, 2010.
The previous cutoff date was February 28, 2010 (already extended from December 31, 2009), and Congress is currently considering legislation to extend the coverage for yet another month, through April 30, 2010.
Additionally, Congress clarified the definition of a qualifying individual as it relates to losing coverage because of a reduction in hours. Employers should monitor the IRS and and DOL Web sites for breaking developments and guidance on this provision. For background information, read our news story, “Congress Extends COBRA Premium Subsidy to February 28.”
For more information, contact a tax principal in your region.