The President signed the COBRA subsidy expansion as part of the Department of Defense Appropriations Act, 2010, extending the COBRA subsidy and requiring employers to notify certain eligible individuals. Highlights of the new law include:

  • Eligible individuals involuntarily terminated from employment on or before February 28, 2010 are eligible to receive the subsidy
  • The premium subsidy period is extended from 9 to 15 months, maximum
  • Employers must send a notice to eligible individuals who were on COBRA on or after November 1, 2009 and to those who became eligible due to termination on or after November 1, 2009

The law also allows for some retroactivity. The DOL has not yet issued requirements for the special notice. We will keep you updated.