A temporary, one-month extension to the COBRA Subsidy was passed and signed by President Obama on March 2nd. Under this subsidy, the qualification for subsidy has been extended for Involuntary Terminations until March 31, 2010. The previous cut-off date was March 28, 2010. The number of subsidized months is still 15 months.
Assistance Eligible Individuals (AEIs) now include anyone who experienced a Qualifying Event (QE) of Reduction of Hours on or after Sept. 1, 2008 who subsequently experienced an Involuntary Termination on or after March 2, 2010 (enactment date of HR 4691 extension) through March 31, 2010. If the individual is not currently on COBRA, whether they originally elected and subsequently had their COBRA terminated, or if they never elected, they will now have a second chance opportunity to elect COBRA. Their 18 months of COBRA will be calculated from the original QE date for the Reduction of Hours. Thus similar to the original ARRA enactment, there will be some who will have a gap in coverage.
Click here to read the HR 4691 extension document.
