The original COBRA premium subsidy extension, passed in December 2009, extended the original eligibility period for involuntarily termed employees. The original cutoff date, December 31, 2009, moved to February 28, 2010.
With February 28th just four days away, a NEW extension for COBRA premium subsidy eligibility has not yet been passed. In fact, reference to such an extension was actually stripped from the jobs bill passed by the Senate today.
However, the AP reports that with the jobs bill now on its way to the House, Harry Reid now wants to extend the COBRA extension (as well as unemployment benefits) before February 28th.
Reid is reported to be considering a two step process:
1) An initial 30 day extension.
2) A follow on, longer term extension, possibly to the end of December.
Another scenario, of course, is “no further extension”…an unlikely outcome, in our view.
We will keep you informed …