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President Obama has signed the Temporary Extension Act of 2010 (H.R. 4691), approving a stopgap, 31-day extension of federal subsidies of COBRA health care premiums as allowed under The American Recovery and Reinvestment Act of 2009 (ARRA).
ARRA initially allowed employees terminated between September 1, 2008 and February 28, 2010 to be eligible for a 65 percent COBRA subsidy.
Now, the COBRA premium subsidy is extended from March 1, 2010 through March 31, 2010. Without Obama's action, employees terminated involuntarily after February 28, 2010 would have been ineligible for the subsidy.
This measure will also allow employees to be eligible for the COBRA subsidy if a reduction in hours that took place prior to FebruaRY 28, 2010 is followed by a layoff during March 2010.
This is real good news, since medical coverage is virtually unattainable for many people without the COBRA reductioin. For more information, go to www.dol.gov/COBRA.
The Senate is scheduled to begin debate this week on extending the COBRA ARRA subsidy through December 31, 2010. We'll keep you posted.
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