COBRA Coverage Assistance Extended
Monday, December 28th, 2009 | Executive Compensation, Executive Compensation Attorney, Federal Legislation
On December 19, 2009, the American Recovery and Reinvestment Act of 2009’s (ARRA) COBRA health insurance subsidy was expanded. Under ARRA, individuals involuntarily terminated from an employer covered under COBRA may be eligible to pay a reduced amount equal to 35% of their usual COBRA extended coverage premium. The extension, included in the Department of Defense Appropriations Act, 2010, increases the time that individuals may take advantage of the subsidies from nine to 15 months and extends the deadline to enter the program from December 31, 2009 to February 29, 2010. Additionally, the revision permits individuals to make retroactive premium payments to restore coverage and eligibility in the program.
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