Compliance Briefing Center

COBRA

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President Signs Law Extending ARRA COBRA Subsidy for an Additional Two Months

Additional Two Month Extension of COBRA Premium Subsidy passes.

Late on April 15, Congress passed H.R.4851, the Continuing Extension Act of 2010, and it was signed by the President last night.

The Continuing Extension Act of 2010 extends the eligibility period for the COBRA continuation premium subsidy for two months. Under prior law, the eligibility period had ended on March 31, 2010. Under the new law, the eligibility period for the subsidy is retroactively extended for two months and will end on May 31, 2010.

The Continuing Extension Act of 2010 also carries extended election procedures for those who were involuntarily terminated after March 31, 2010, and before the date of enactment of the new law, and new notice requirements for plan administrators.

The Continuing Extension Act of 2010 also extends a number of other programs, such as unemployment insurance.

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