Deadline for Federal COBRA Subsidy Again Extended

Last week, Congress passed the Continuing Extension Act of 2010, which among other things, extends unemployment benefits through June 2, 2010 and again extends the federal COBRA subsidy until May 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 CEA maintains the new provision from the Temporary Extension Act of 2010 which provides that individuals 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 eligible for the COBRA subsidy. The Department of Labor has not yet amended the COBRA notifications which employers must send to eligible employees (and its website still refers to the March 31 date).

The Ohio Department of Insurance reports 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 still mentions the March 31, 2010 deadline from the TEA and has not yet addressed the affect, if any, of the CEA.

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.