Articles

COBRA PREMIUM SUBSIDY EXTENDED

By Denise Y. Tataryn

Congress recently passed, and the President has signed the Fiscal Year 2010 Department of Defense Appropriation Act, which changes the COBRA premium subsidy that was created by the American Recovery and Reinvestment Act of 2009 (ARRA). The changes are retroactive to February 17, 2009. ARRA provides a COBRA premium subsidy for employees involuntarily terminated between September 1, 2008 and December 31, 2009. The eligibility period has been extended for an additional two months. ARRA provided a subsidy for up to nine months. The maximum period under the new law has been extended to allow up to 15 months of premium subsidy. Plan administrators/employers must provide notice within 60 days of the date of enactment, or by February 17, 2010, to individuals who are eligible on or after October 31, 2009 and individuals who have COBRA qualifying event of termination of employment, voluntarily or involuntarily, on or after October 31, 2009. Individuals who exhausted their nine months of premium assistance before this new law are subject to special rules.

Denise Tataryn is a shareholder of Mansfield Tanick & Cohen, P.A. practicing in the areas of employment, disability and ERISA litigation. She regularly counsels clients in all aspects of the employment relationship, including employment contracts, non-compete agreements, wrongful termination, sexual harassment and discrimination, wage disputes and management training. She can be reached at 800-401-6194 or via email at dtataryn@mansfieldtanick.com.