Subsidy for COBRA Premiums Extended
“Here is a timely reminder about COBRA benefits from our friend Kirk Radford at Taligence – HR Consulting & Solutions:”
President Obama and Congress have once again extended the COBRA subsidy. Approved yesterday, the Continuing Extension Act of 2010 provides a 65% subsidy of COBRA premiums for individuals who lose group health plan coverage because of an involuntary termination between March 1 and May 31, 2010. The subsidy is available for up to 15 months.
The extension also applies to those who initially lost group health plan coverage because of a reduction in hours and then experienced a termination of employment between March 1 and May 31 of this year.
NOTICES MAY BE REQUIRED
Because the last COBRA subsidy extension already expired, individuals who experienced an involuntary termination since March 31, 2010 and have already received a COBRA election notice will need to receive an updated notice explaining their rights under the extension. These individuals are entitled to a special election period, even if they previously declined COBRA coverage. The updated notices must be sent by June 15, 2010.We expect the Department of Labor to issue additional guidance and an updated election form(s) soon.
Kirk P. Radford
Taligence - HR Consulting & Solutions
www.taligence-hr.com
Dirk A. Beamer