On March 2, 2010, the Temporary Extension Act of 2010 (TEA) extended and expanded the COBRA premium subsidy program that was introduced in the American Recovery and Reinvestment Act of 2009 (ARRA). On April 15, 2010 that program was further extended with the passage of the Continuing Extension Act of 2010 (CEA).
The following is a summary of the cumulative effect of the TEA and the CEA:
- The COBRA 65 percent subsidy is now available to individuals who lost health coverage on account of the involuntary termination of the employee’s employment if that termination occurred from March 1, 2010 through May 31, 2010.
- The COBRA 65 percent subsidy is now available to individuals who lost health coverage on account of the reduction in hours of the employee’s employment if that reduction occurred from September 1, 2008 through May 31, 2010 and the employee’s employment was subsequently involuntarily terminated at any time from March 2, 2010 through May 31, 2010.
- Notices explaining the extended and expanded COBRA premium subsidy must be provided to certain individuals on a timely basis.
More information about COBRA in general, and the TEA and the CEA in particular, is available on the DOL Website at http://www.dol.gov/ebsa/COBRA.html.
If you have questions about the TEA or the CEA, or if you would like information on ASR’s COBRA administration services, please contact ASR Health Benefits at (616) 957-1751 or (800) 968-2449 and ask for Paige Eaton.