Tag Archives: COBRA

ILN Today Post

COBRA Benefit Included in American Relief Plan

On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) which includes, among its many provisions, a COBRA premium assistance benefit. This provision treats an individual eligible for COBRA assistance, for purposes of any COBRA continuation provision, as having paid in full the COBRA premiums for the period April 1, 2021 through September 30, 2021 (the Premium Assistance Period). This relief will be available for anyone who (1) becomes COBRA eligible during the Premium Assistance Period, (2) is currently enrolled in COBRA, or (3) is within their COBRA continuation period (generally 18 months) but did not elect or previously dropped COBRA coverage. Any person who qualifies for assistance and is currently enrolled in COBRA – or did not elect COBRA but is within their COBRA continuation period – must elect COBRA coverage within 60 days of receiving notice of the extended election period from their former employer.

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No New Extension of COBRA Benefits Subsidy

The recent passage of the Emergency Unemployment Compensation Program Extension and Extended Benefits Temporary Provisions Extension did not extend the subsidy of COBRA benefits.    Congress had previously extended the subsidy for COBRA benefits through May 31, 2010.   The COBRA subsidy provided a 65% health insurance premium subsidy for up to 15 months to qualified employees […]

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UPDATE – COBRA Subsidy: Extension Through May 31, 2010

Background

As we reported in our Client Alert of December 24, 2009 (“UPDATE: Cobra Subsidy: What it Means for Employers Now“), President Obama signed into law the Department of Defense Appropriations Act, 2010 (the “Defense Appropriations Act”), which, among other things, extended and expanded certain provisions of the American Recovery and Reinvestment Act of 2009 (“ARRA”) pertaining to premium assistance for benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). The Defense Appropriations Act extended the COBRA premium subsidy for assistance-eligible individuals who became eligible for COBRA from the period that began September 1, 2008, and ended on December 31, 2009, to the period that ended on February 28, 2010.

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UPDATE – COBRA Subsidy: New Extension Through March 31, 2010

As we reported in our Client Alert of December 24, 2009 (“UPDATE: COBRA Subsidy: What it Means for Employers Now“), President Obama signed into law the Department of Defense Appropriations Act, 2010 (the “Defense Appropriations Act”), which, among other things, extended and expanded certain provisions of the American Recovery and Reinvestment Act of 2009 (“ARRA”) pertaining to premium assistance for benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). The Defense Appropriations Act extended the COBRA premium subsidy program for assistance-eligible individuals who became eligible for COBRA from the period that began September 1, 2008, and ended on December 31, 2009, to the period that ended on February 28, 2010.

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UPDATE – COBRA Subsidy: DOL Issues Updated Model COBRA Notices and Other Guidance

As we advised you in our Client Alert that was issued on December 24, 2009 (“UPDATE: Cobra Subsidy: What it Means for Employers Now“), President Obama signed into law the Department of Defense Appropriations Act of 2010 (the “Act”), which, among other things, extended and expanded certain provisions of the American Recovery and Reinvestment Act of 2009 (“ARRA”) pertaining to premium assistance for benefits under the Consolidated Budget Reconciliation Act of 1985 (“COBRA”). The Department of Labor (“DOL”) has issued the following updated information, of which we wanted to make you aware:

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UPDATE – COBRA Subsidy: What It Means For Employers

Updated from 2/25/09

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (H.R. 1, S. 1) (the “Act”), which, among other things, amends the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).

The Act provides:

  • for a government subsidy of up to 65 percent of the COBRA premiums (including state “mini-COBRA” coverage) to certain eligible individuals (known as “assistance eligible individuals”);
  • that the COBRA subsidy applies only to individuals who are eligible for COBRA due to an involuntary termination from employment from September 1, 2008, through December 31, 2009; and
  • that the COBRA subsidy applies for a maximum of nine (9) months of coverage (beginning on March 1, 2009).
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