April 19, 2010

COBRA Subsidy Again Extended, This Time Through May 31, 2010

On April 15, 2010, President Obama signed into law the Continuing Extension Act of 2010, thereby renewing the COBRA premium subsidy that had expired March 31, 2010. The legislation extends the subsidy to eligible individuals who are involuntarily terminated from employment on or before May 31, 2010, and provides retroactive eligibility for individuals who lost their jobs after the prior COBRA subsidy period expired. The program provides eligible individuals a 65 percent tax subsidy for the cost of COBRA health insurance premiums for a period of up to 15 months. The Department of Labor has updated its COBRA Premium Reduction Fact Sheet, which explains the basic provisions of the subsidy program.

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