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Congress Approves COBRA Subsidy Extension
From: Connecticut Employment Law Blog
Over the weekend, Congress approved of a measure that I reported on last week that will extend COBRA for a few more months. The President is expected to sign the measure and no doubt the DOL will be updating its website with new information. Thus, employers should continue to keep tabs on this development as it will affect those who have been laid off this month and will be eligible for COBRA starting 1/1/10. (H/T Workforce)

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Congress Extends COBRA Subsidy
Over the weekend, the Senate passed a defense spending bill that included -- among many other things -- an extension of the COBRA premium subsidy provision that's about to expire. (You can find the entire bill at the website of the Library of Congress; search for the bill number, H.R. 3326, then skip ahead to Section 1010). The House already passed the bill, and it's been sent to the President for signing. Currently, the COBRA subsidy allows those who are involuntarily terminated from September 1, 2008, through December 31, 2009 to receive a subsidy of 65% of their COBRA premium payments for up to nine months. The subsidy went into effect on March 1, 2009, which means that the first group of eligible folks -- those who had already lost their jobs and have been receiving the subsidy s...
More | Nolo's Employment Law Blog
COBRA Subsidy Coming to an End, Kind Of - What Employers Need to Know
This week, both the Hartford Courant and the Hartford Business Journal,  have run lengthy articles suggesting that the COBRA subsidy -- which went into effect in February of this year -- is coming to end for most workers.  Unfortunately, the articles miss the big picture of the law and, in doing so, add to the confusion surrounding the law. So, let's take a moment to understand the context.

Before February 2009, laid off workers who wished to continue their health benefits had an option to do so but typically by paying the full amount of the premiums. They could do so under the law known as COBRA. Then in February 2009, Congr...
More | Connecticut Employment Law Blog
COBRA Subsidy Extension Becomes Law; What Employers Need to Do Now
So, President Obama signed a bill that extends the COBRA subsidy. No big deal, right? Well, not exactly. First, let's go over what's in the final provision: The eligibility period to receive the COBRA subsidy has been extended two months -- to February 28, 2010. That means that individuals w

ho have been laid off recently who were going to start on COBRA on 1/1/10 are now eligible for COBRA. More importantly, the COBRA subsidy period (i.e. the time that individuals can get the government to subsidize part of the cost of the premium) has now been extended to 15 months (up from 9 months.) This means that individuals who ...
More | Connecticut Employment Law Blog
Will COBRA Subsidy Be Extended?
As the end of the year approaches, Congress and President Obama are considering whether to extend several important economic benefits to help ease the effects of the recession. For instance, the tax credit for first-time homebuyers, an $8,000 credit that one economist says will have resulted in 400,000 home sales during its tenure, is set to expire on December 1, 2009. Unemployment benefits are another topic of discussion: The House of Representatives has already passed a bill that would provide an additional 13 weeks of unemployment benefits in states with unemployment rates of at least 8.5%. The Senate is considering a different approach, which would extend benefits for 14 weeks in every state, and by an additional six weeks in states with higher unemployment. And what of the COBRA subs...
More | Nolo's Employment Law Blog
COBRA Subsidy Extended -- and Expanded
After the Senate finally convinced Senator Jim Bunning to stand down his one-man protest (covered in my previous post), Congress passed -- and the President signed -- an extension of the COBRA subsidy last week. (You can find the bill, called "The Temporary Extension Act of 2010," here.) The extension is clearly a stopgap measure: It lasts only until the end of this month (March), by which time Congress hopes to have passed a more comprehensive jobs bill that will keep the subsidy in effect through the end of this year. But the one-month extension of the subsidy wasn't the only COBRA news in the Temporary Extension Act: The bill also expands eligibility for the subsidy to those who initially lose their health insurance coverage due to a reduction in work hours, then are laid off. This is ...
More | Nolo's Employment Law Blog
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