Stay Tuned – Further Extension to the COBRA Subsidy Likely

Among the legislation delayed by the snowfall in Washington is another possible extension to the COBRA subsidy.

The initial changes made last year were: 

  • The last the end date of eligibility for the ARRA subsidy was extended from December 31, 2009, to February 28, 2010.
  •  The ARRA premium Subsidy increased from nine months to the current 15 months. 

Now, at least two different sets of extensions are being considered: 

 1)      The Administration’s proposed federal budget for fiscal year 2011 includes a proposal to extend eligibility to employees laid off from March 1, 2010 through Dec. 31, 2010. The subsidy period in this legislation is reduced to 12 months.

2)      The pending jobs bill proposes extending eligibility until May 31, 2010. The duration of the subsidy would remain at the current 15 months.

12 months? 15 months? The good news will be extending the benefit for the those in need, but we feel the pain of those once again trying to be ahead of the compliance curve.

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Filed under COBRA, Health Care Spending, Health Plans, Legislative Updates

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