COBRA Subsidy Program Extended a Third Time

President Obama signed H.R. 4851, also known as the "Continuing Extension Act of 2010" into law on April 15, 2010. Among other items, the Act included another extension of the COBRA premium subsidy program. The COBRA subsidy extension is effective retroactive to April 1, 2010.

Prior to this bill's enactment, COBRA premium assistance had expired on March 31, 2010 when prior extensions ended. This new extension will provide COBRA premium assistance for terminated workers who experience either of two qualifying events. The first qualifying event applies to an involuntary termination of employment up until May 31, 2010. The second event is an involuntary hours reduction followed by an involuntary termination provided the termination occurs between March 1, 2010 and June 1, 2010.

Even though the Act was passed after the previous legislation had expired, the new bill retroactively applies to those who were involuntarily terminated since April 1, 2010.

As with prior extensions, individuals that qualify for premium assistance are eligible for up to 15 months of subsidized premiums.

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