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Compliance Briefing Center


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Compliance Alert: Important Update on COBRA Premium Subsidy Extension

New Jobs Bill Includes COBRA Subsidy Extension

As expected, Senate Majority Leader Harry Reid (D-NV) has released the second portion of the “Jobs Package,” H.R. 4154, the American Workers, State, and Business Relief Act of 2010. The bill includes a number of provisions to extend expiring programs, including the COBRA premium subsidy. More specifically, Section 211 provides:

  • 10-month extension of the premium subsidy (i.e., it would be available to those laid-off through December 31, 2010);  and
  • clarification that individuals whose hours were reduced prior to being laid off entirely would become eligible for COBRA subsidies upon loss of employment.

For your convenience the bill has been posted to the WageWorks® Compliance Center. See Section 211, starting on page 42, for the specific language dealing with the COBRA subsidy extension.