March 11, 2014

COBRA Subsidies Again Extended

As previously reported, in 2009 President Obama signed into law the American Recovery and Reinvestment Act, which, among other things, provided for a 65 percent subsidy for Consolidated Omnibus Budget Reconciliation Act (“COBRA”) premiums. On April 15, 2010, President Obama signed the Continuing Extension Act of 2010 that continues the 65 percent subsidy for 15 months for individuals who lost their jobs through May 31, 2010. The Continuing Extension Act also provides transition relief for those who lost their jobs between March 31, 2010 and April 15, 2010, the date of enactment. Employers are again required to notify former employees and their dependents of the retroactive relief.