President Obama’s signature is hardly dry on the Temporary Extension Act of 2010, but it is effective immediately so here’s what you need to know about it.
The Act extends the period for the COBRA subsidy provided in the American Recovery and Reinvestment Act (ARRA) from February 28th, 2010 to March 31st, 2010 – an additional 30 days.
This means that employees who were involuntarily terminated between September 1, 2008 and March 31, 2010 are eligible for the 15-month 65% premium subsidy. The revised provision also allows employees to receive the subsidy if they first lost group coverage due to a reduction in hours and then were terminated.
Talks for future extensions are already in the works. As always, if more changes are made, HR Idiot will be sure to let you know about them.
Feeling ambitious? You can read the full text of the law (H.R. 4691) by clicking here.
If you need a place to start for a COBRA overview, check out the Frequently Asked Questions section on the Department of Labor’s website by clicking here.