PRESIDENT SIGNS ANOTHER COBRA
SUBSIDY EXTENSION
President
Obama has signed legislation extending the COBRA premium subsidy to
assist individuals who have lost their jobs since the previous COBRA
subsidy expired March 31, 2010.
The new law is called the Continuing Extension Act of 2010 (the
"Act"). It extends the 15 month COBRA subsidy to individuals who
are involuntarily terminated through May 31, 2010.
As in the past, the Department of Labor
("DOL") has also issued updated Model Notices for employers and group
health plans to use when notifying eligible individuals about the COBRA
subsidy.
What's New?
- The Act
extends the period during which an employee who is involuntarily
terminated will be eligible for the COBRA subsidy. That period is
now extended an additional 2 months from March 31, 2010 to May 31, 2010.
- The Act also allows employees to receive the subsidy if
they were involuntarily terminated any time from March 2, 2010 through
May 31, 2010 and the involuntary termination followed a qualifying
event that was a reduction of hours that occurred between September 1,
2008 and May 31, 2010.
To learn more about the new extension, go to: COBRA Premium Article
New Notices Required
- A new notice explaining the subsidy
rules must be issued to all individuals who experienced a qualifying
event after March 31, 2010 (the date the prior subsidy extension
expired). The DOL has issued new Model Notices which reflect the
COBRA subsidy extension through May 31, 2010. Employers and group
health plans can use these Model Notices to comply with their notice
requirements under COBRA. To view these updated Model Notices go
to: New Model Notices
Congress is still debating H.R. 4213, the
American Workers, State and Business Relief Act of 2010. If
passed as written, this law would extend the COBRA subsidy through December 31, 2010. We will update you on any new developments that occur with this new legislation.
Your contact at the Firm is ready to assist you if you have any questions about this new law.
For more information, call us today at (818) 508-3700,
or visit us on the web, at www.brgslaw.com.
Sincerely,
Richard S. Rosenberg
Partner
BRG&S, LLP
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