Late Tuesday night, President Barack Obama signed the Temporary Extension Act of 2010 (H.R. 4691) into law. The bill, which passed the U.S. Senate by a 78-19 vote Tuesday night and passed the U.S. House of Representatives last week, extends the original federal COBRA subsidy created by the American Recovery and Reinvestment Act of 2009 (ARRA) by one month.
The new legislation extends the subsidy to individuals who are involuntarily terminated between March 1, 2010, and March 31, 2010. Since the last COBRA subsidy extension period ended February 28, 2010, this extension applies retroactively (i.e., to March 1 and 2). The legislation also includes a provision that allows certain individuals who initially lost group health coverage because of a reduction in hours and were then terminated after the legislation was enacted to receive the subsidy.
Congress is also considering legislation that would further extend the COBRA subsidy to the end of the year.
Also, you can keep up with the latest legal changes affecting employer benefits and trends in employee benefits with the Benefits Complete Compliance