Categories: Articles

COBRA Premium Subsidy Extended to May 31, 2010

On April 15, 2010, President Obama signed into law the Continuing Extension Act of 2010, which has once again extended the COBRA premium subsidy as provided for in the American Recovery and Reinvestment Act of 2009 (“ARRA”); this time the subsidy has been extended from March 31, 2010 to May 31, 2010. This new law provides retroactive eligibility for individuals who involuntarily lost their employment after the prior COBRA subsidy extension expired on March 31, 2010. Under the ARRA, “assistance eligible individuals” pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a payroll tax credit. An “assistance eligible individual” is the employee or a member of his/her family who timely elects COBRA coverage following a qualifying event related to an involuntary termination of employment that occurs at any point in time from September 1, 2008 through May 31, 2010. In addition, an involuntary termination of employment that occurs on or after March 2, 2010 but by May 31, 2010 and follows a qualifying event that was a reduction of hours that occurred at anytime from September 1, 2008 through May 31, 2010 is also a qualifying event for purposes of the ARRA.

Published by
ONeil Cannon

Recent Posts

Former O’Neil Cannon Attorneys Devoted to Public Service

A number of former O’Neil Cannon attorneys have devoted a substantial portion of their professional…

5 hours ago

College Athletics Are A-Changing

The transfer portal and NIL (name, image, and likeness) payments have recently significantly changed the…

1 week ago

Spring Cleaning for Your Business: Consider Your Document Retention Practices

Spring is the season for cleaning and organization—and it can also be a good time…

1 month ago

Wisconsin Incentivizes “Closing Credits” by Opening New Tax Credits for Filmmakers

A significant development to Wisconsin’s economic and cultural policy is now underway, as Governor Tony…

1 month ago

O’Neil Cannon Adds Four Shareholders

O’Neil Cannon is pleased to announce that Christina Ruud, Cate Heerey, Nancy Wilson, and Max…

2 months ago

O’Neil Cannon Welcomes Attorney Sabrina Dornan

O’Neil Cannon is pleased to announce that Sabrina Dornan has joined the firm. Dornan focuses…

2 months ago