COBRA Subsidy Extended Until May 31, 2010

The Continuing Extension Act of 2010 reinstated the COBRA subsidy, which had expired on March 31. Accordingly, individuals who are involuntarily terminated from employment between Sept. 1, 2008, and May 31, 2010, may be eligible for a 65 percent subsidy of their COBRA premiums for a period of up to 15 months. In some cases, workers who had their hours reduced and later lost their jobs may also be eligible for the subsidy.

Individuals who lose their jobs during the months of April and May may qualify for a 65% subsidy on their COBRA health insurance premiums. The American Recovery and Reinvestment Act, established the subsidy to help individuals maintain their employer sponsored health insurance after they have lost their jobs as a result of the recession and employer reductions.

Dated: April 26, 2010 – Castronovo & McKinney