• The eligibility period was changed from Dec. 31, 2009 to Feb. 28, 2010.
  
• The duration period of the premium subsidy was extended from 9 to 15 months.

Notice that the eligibility for the subsidy is based on the qualifying event’s timing (instead of COBRA eligibility).

Resources and Forms

• On January 22, DOL conducted a compliance assistance webcast on the COBRA premium subsidy as extended by the Department of Defense Appropriations Act of 2010 (2010 DOD Act). Click here to view an archived copy of the webcast. Be sure to listen to the entire webcast; it provides much needed clarification.

• COBRA Questions and Answers: Reporting and Documentation, Q/A RD-6 (Rev. Jan. 20, 2010); IRS News Release IR-2010-9 (Jan. 20, 2010). In Q&A RD-6, the IRS has addressed a question about the timing for an employer's tax credit relating to a reduced COBRA premium payment received by an employer in January 2010 for December 2009 coverage. Click here to view Q&A RD-6. Click here to read the News Release.

• DOL Posts Revised Fact Sheet, Revised Model Notices and New FAQs on the COBRA Premium Subsidy Extension. This new guidance deals with transition period and notice requirements of the subsidy extension included in the 2010 DOD Act. Click here to view the DOL model notices. Click here to read the FAQs. Click here to view the revised DOL fact sheet. Click here to view Poster and Flyers.

• Information Letter 2009-0243 (Oct. 27, 2009). This letter answers an inquiry about the deductibility of COBRA premiums. The answer explains that an individual may deduct medical expenses paid for qualified medical care, to the extent that these expenses exceed 7.5% of the individual's adjusted gross income, and that insurance premiums paid for medical care are specifically included as a medical expense. If the individual qualifies for and elects ARRA, the medical expense amount is limited to the COBRA premium actually paid by the individual. Click here to read the letter.

• Application for Expedited Review of Denial of COBRA Premium Reduction (Feb. 17, 2010). This application is for use by individuals who have been denied the COBRA premium subsidy after they have requested to be treated as assistance eligible individuals entitled to the COBRA premium subsidy. This application requests the DOL to review their denial. (The 2010 DOD's changes are taken into account.) Click here to see a copy of the application.

FOR FURTHER INFORMATION

The best resources for the COBRA premium subsidy can be found at the DOL’s website, www.dol.gov/COBRA. You can also call a DOL Benefits Advisor toll-free at 1-866-444-3272 for answers to your questions. (They can only answer questions, but not take your application over the phone.)