House passes COBRA extension

As anticipated, the House of Representatives voted last week to extend the COBRA/ARRA subsidy. 

Embedded in H.R. 3326, a measure appropriating funds for the Department of Defense, the nine-month, 65 percent premium subsidy would be extended by six months to a total of 15 months. It would apply to those who lose their jobs through February 28, 2010. Under current law, employees who lose their jobs after December 31 are ineligible for the subsidy. The measure, approved on 395-34 vote, also would provide an additional six months of subsidized coverage for beneficiaries whose nine-month COBRA premium subsidy has run out.

In addition, the legislation would give beneficiaries whose subsidy ran out and who didn’t pay the full premium a second chance to opt for coverage. For example, a beneficiary whose nine months of subsidized coverage ran out November 30 and who didn’t pay the regular unsubsidized December premium could pay the 35 percent premium share in January and receive coverage for December.

The matter is now before the Senate, which is expected to act quickly before the premium aid program expires at the end of the year. We will keep you updated.

2017-03-14T14:46:38+00:00