President, Congress Extend COBRA Subsidy Again

Yesterday, President Barack Obama signed the Continuing Extension Act of 2010 (H.R. 4851) into law. The bill, which passed the U.S. Senate by a 59-38 vote and the U.S. House of Representatives by a 289-112 vote yesterday, extends the original federal COBRA subsidy created by the American Recovery and Reinvestment Act of 2009.

The new legislation extends the subsidy to individuals who are involuntarily terminated between April 1, 2010, and May 31, 2010. Since the last COBRA subsidy extension period ended March 31, 2010, this extension applies retroactively. Congress is also considering legislation that would further extend the COBRA subsidy to the end of the year.