Deadline for Federal COBRA Subsidy Again Extended

Early in March, Congress passed the Temporary Extension Act of 2010, which among other things, extended unemployment benefits through April 5, 2010 and again extended the federal COBRA subsidy until March 31, 2010. However, the length of time (15 months) for which an individual may receive the COBRA subsidy has not been extended. In addition, the TEA added another provision which provides that individual who experience a COBRA qualifying event of a reduction in working hours (which renders them ineligible for medical insurance even though they remain employed part-time) before March 1, 2010, but are laid off after March 1, 2010 are now eligible for the COBRA subsidy. The Department of Labor has amended the COBRA notifications which employers must send to eligible employees (even though the explanation section of its website still refers to the February 28 date).

The Ohio Department of Insurance has reported that on February 25, 2010, Govenor Strickland also signed a bill to authorize the temporary extension of the period of time which the laid-off employees of small employers (i.e., with less than 20 employees who are not subject to the federal COBRA statute) from 12 months to 15 months for as long as a federal COBRA subsidy is available. The ODOI website also mentions the new March 31, 2010 deadline.

More information about the COBRA subsidy and the notices employers are required to send is available at Employers Must Send Amended COBRA Notices and DOL Publishes Model Notices for COBRA Subsidy Under Stimulus Act to Be Sent by Employers Before April 18.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.