New amendments extend COBRA 65% subsidy to May 31 — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

New amendments extend COBRA 65% subsidy to May 31

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in Employee Benefits Program,Firing,Human Resources

by Patrick W. McGovern and Li Jing, Esqs.

Effective April 15, 2010, the 65% COBRA premium subsidy program that originally took effect in early 2009 will remain available until May 31, 2010. The new date became official on April 15 when President Obama signed the Continuing Extension Act of 2010, which stretched eligibility for the subsidy and extended several other federal benefits designed to help unemployed workers.

•    Subsidy eligibility extended to May 31: Under current law, a former employee is eligible to receive a 65% subsidy toward the cost of health insurance coverage for up to 15 months if he or she was involuntarily terminated on or after Sept. 1, 2008, and before June 1, 2010, or experienced a reduction in work hours followed by involuntary termination between March 2 and May 31, 2010.

To be eligible, the former employee must have been a participant in a group health insurance plan covered by COBRA or in a plan...(register to read more)

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