Thursday, March 4, 2010

Temporary COBRA subsidy extension signed into law

The Senate passed the Temporary Extension Act of 2010 on March 2 by a vote of 78-19, originally passed by the House on February 25. President Obama immediately signed the bill into law.

Provisions include:
• Extending the eligibility period for the 15-month 65% premium subsidy to those involuntarily terminated from March 1 through March 31, 2010;
• Allowing employees to receive the subsidy if they lost group coverage due to a reduction in hours and were terminated after the bill’s enactment; and
• Extending unemployment benefits through April 5, 2010.

This short-term extension is intended to give Congress time to develop broader legislation that will extend these programs through the end of the year.

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