Friday, April 16, 2010

Congress passes short-term COBRA subsidy extension

After resuming session in Washington this week, Congress passed another short-term COBRA subsidy extension, which President Obama signed into law late Thursday. This temporary measure extends the eligibility period for the 15-month 65% premium subsidy to those involuntarily terminated through May 31, 2010.

Although the previous extension expired on March 31, this provision is effective retroactively to April 1 to avoid a lapse in the program.

President Obama has urged lawmakers to pass legislation extending the subsidies to employees laid off through the end of the year. While the Senate has passed a measure proposing an extension into 2011, the House has yet to act on it.

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