Congress Extends (Again) the COBRA Premium Subsidy

In what is becoming a common occurrence, Congress again has extended and modified the COBRA premium subsidy program originally created under the American Recovery and Reinvestment Act of 2009. On April 15, 2010, President Obama signed the Continuing Extension Act of 2010. For background information regarding the COBRA premium subsidy, see our earlier Client Advisories regarding this topic from March and December.

The Continuing Extension Act extended the deadline for the COBRA premium subsidy program from March 31, 2010 (which was the deadline under the Temporary Extension Act of 2010) to involuntary terminations occurring on or before May 31, 2010.

The endless extensions are not over. Pending legislation, the American Workers, State and Business Relief Act of 2010, would extend the COBRA premium subsidy for involuntary terminations through December 31, 2010. This legislation is expected to pass soon.

Please contact any member of our Employee Benefits Team for more information or updates regarding these requirements.

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