COBRA Subsidy Extended Through May 31, 2010

April 13, 2010

On April 15, 2010, President Obama signed into law the Continuing Extension Act of 2010 (CEA). The CEA provides yet another extension of the 65% COBRA premium subsidy for eligible individuals who are involuntarily terminated through May 31, 2010.

The American Recovery and Reinvestment Act of 2009 (ARRA), as amended by the CEA, mandates that plans notify certain current and former participants and beneficiaries about the COBRA subsidy. For a detailed description of COBRA’s notice requirements, see the USDOL’s updated COBRA Premium Reduction Fact Sheet.

For additional information on the COBRA subsidy, including updated model notices, visit www.dol.gov/ebsa/COBRA.html

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