President Obama signs bill extending COBRA subsidy

On March 2, 2010, President Obama signed the Temporary Extension Act of 2010 (H.R. 4691), which extends the eligibility period for the COBRA premium subsidy through March 31, 2010.

The eligibility period, as previously extended by the Department of Defense Appropriations Act, 2010 (P.L. 111-118), had expired on February 28, 2010.

The law also expands the definition of "assistance eligible individual" to include as a qualifying event the loss of health care coverage because of a reduction in hours followed by involuntary termination of employment. The period of these individuals' continuation coverage will be determined as though the qualifying event were the reduction of hours of employment. Group health plan administrators must provide notice of the subsidy to these individuals within 60 days of the involuntary termination of employment. The notice must comply with the rules set forth in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), which initially enacted the COBRA subsidy.