Compliance Briefing Center

COBRA

{Making it Easier for You
to Manage Benefits}

Two Week Recess by Congress Postpones Potential Subsidy Extension

Previously, the WageWorks® COBRA Client Updates had communicated that Congress recently passed the Temporary Extension Act of 2010, extending both unemployment benefits and the COBRA premium subsidy assistance eligibility period, originally provided by the American Recovery and Reinvestment Act (ARRA) from February 28, 2010 to March 31, 2010.  This extension also included a modification of the original Act to address loss of coverage events due to a reduction in hours.

The Continuing Extension Act of 2010, HR 4851, was approved by the House on March 17th, 2010 and included a one-month extension of eligibility for the COBRA subsidy assistance through April 30th, 2010.  However, the Senate failed to pass this bill before adjourning for their two week recess.

As a result, in order to facilitate your full compliance with all COBRA regulatory requirements, WageWorks will provide the required notices regarding the temporary eligibility period extension to March 31, 2010 to all impacted participants.  The $6.00 fee per notice will apply for this communication.

WageWorks will continue to provide updates on pending legislation impacting COBRA as it occurs.

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