On April 15, President Obama signed into law amendments to the Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidy provision of the American Recovery and Reinvestment Act stimulus. Those amendments—plus amendments enacted in March—not only extend the time that the subsidy is available, but also offer it to certain individuals whose hours were reduced before they were involuntary terminated.
COBRA allows employees who have lost their jobs to continue buying health insurance coverage under their former employer’s plans.
Extension of subsidy
The bill extends the COBRA subsidy, which covers 65% of an individual’s portion of the premium, for involuntaryoccurring on or before May 31, 2010. The subsidy had expired for terminations that occurred after March 31.
Now, the COBRA subsidy is available to individuals who involuntarily lost their jobs between Sept. 1, 2008, and May 31, 2010, and who were covered un...(register to read more)