COBRA “Stimulus Act” Extended Yet Again

March 13, 2010

The COBRA subsidy originally provided for under the American Recovery and Reinvestment Act of 2009 (the “Stimulus Act”) and which was extended until February 28, 2010 under the Department of Defense Appropriations Act of 2010 (the “DOD Act”), was recently extended yet again by the Temporary Extension Act of 2010 (“TEA”).

According to the U.S. Department of Labor’s website, TEA extends the COBRA premium reduction eligibility period for one month until March 31, 2010. TEA also expands eligibility to individuals who experience a qualifying event that is a reduction of hours occurring at any time from September 1, 2008 through March 31, 2010, which is followed by an involuntary termination of employment on or after March 2, 2010 through March 31, 2010.

This expansion also includes a second election opportunity for these individuals who had a reduction of hours qualifying event followed by an involuntary termination, if they did not elect COBRA continuation coverage when it was first offered OR elected but subsequently discontinued COBRA.”

For more information on TEA, as well as updated model COBRA notices, please visit www.dol.gov/ebsa/cobra.html.

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