On December 21, 2009, President Obama signed into law the Department of Defense Appropriations Act of 2010 (the “Act”). Among other things, the Act extends the COBRA premium subsidy previously enacted by the American Recovery and Reinvestment Act (“ARRA”), from December 31, 2009 until February 28, 2010.
The Act makes clear that the qualifying event (involuntarily termination other than for gross misconduct or reduction in hours, which causes a loss of coverage) must occur before February 28, 2010.
Last week the House of Representatives just approved a bill that extends the ARRA COBRA premium subsidy for involuntary terminations of employment that occur through 3/31 and addresses the situation where a reduction of hours is followed by an involuntary termination of employment. We will watch to see what the Senate does. Remember, just because the House of Representatives approves a bill does not make it law; it has further to go!
The information contained herein is for informational purposes only and is not intended as legal or tax advice, nor is it intended to advise you of your obligations under ERISA, COBRA, HIPAA or the American Recovery and Reinvestment Act of 2009. It should not be used or relied upon as the basis for any action or choosing inaction. Consult an experienced benefits attorney or tax professional about your specific situation before deciding on any course of action or inaction.
Filed under: American Recovery and Reinvestment Act of 2009, ARRA, COBRA Tagged: | COBRA; ARRA; Premium Subsidy
Has there been any extensions past February 2010?