COBRA Premium Subsidy Program Extended (Again!)

Cox Smith Employee Benefits E-Alert

On March 2, 2010, the President signed into law another temporary extension of the COBRA premium subsidy originally provided for under the American Recovery and Reinvestment Act of 2009. The new law extends from February 28, 2010 to March 31, 2010 the window for involuntarily terminated employees to qualify for the premium subsidy. It also grants a new COBRA election to persons who: (1) lost health coverage after September 1, 2008 due to a reduction of hours; (2) did not elect COBRA coverage after such loss; and (3) are involuntarily terminated by the same employer during the period of March 2 through March 31, 2010, inclusive.

The law also includes a new penalty of up to $110 per day for employers who take more than 10 days to comply with a Department of Labor finding that a person qualifies for the COBRA premium subsidy.

For more information about the new law, please see the DOL website here:

Katherine Patton Noll
Mary M. Potter
Joshua A. Sutin
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