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COBRA Subsidy Extended; Further Extensions Likely

By Stuart Sirkin

In the midst of the ongoing health care reform debate, Congress was able to unanimously agree on retroactively extending the Federal 65% COBRA health care premium subsidy for workers involuntarily separated. The original program provided only nine months of subsidy. Thus, for laid-off workers whose federal subsidies started March 1, 2009 (the earliest date possible), November was the last month they could receive the federal subsidy. The original program also did not cover workers who lost their health care after Dec. 31, 2009.

The expansion of the program to those involuntarily separated as late as Feb. 28, 2010, and for a total of 15 months of subsidy is good news for employees who have recently been laid off. Further, the House has passed an additional extension as part of a separate bill that the Senate is expected to take up before the Feb. 28 deadline. The President signed the legislation, which was an amendment to the Department of Defense Appropriations Act of 2010 (P.L. 111-118), on Dec. 19, 2009.

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