With the unemployment rate at 10.2%, the highest level since 1983, it is highly likely that the ARRA COBRA subsidy will be extended. As you are aware, the bulk of those who were first eligible for the subsidy will no longer be eligible for the subsidy as of the end of November 2009. It is very possible that Congress could act quickly to avoid any discontinuation of coverage for these participants. As of now, there are three proposed Bills to extend the subsidy (two in the House, one in the Senate):

Senate Bill S 2730

This bill would extend the subsidy by six months, to June 30, 2010 (a total of 15 months) for those who became eligible March 1, 2009. It would also extend the eligibility date to June 30, 2010 and increase the subsidy amount from 65% to 75%. It would also expand eligibility to include workers who lose health coverage as a result of a involuntary reduction in hours. To read the bill in its entirety, click here.

House Bill HR 3930 - "Extended COBRA Continuation Protection Act of 2009"

This bill extends COBRA continuation for involuntarily terminated (or reduction of hours) individuals between April 1, 2009, and December 31, 2009 to 24 months. It also adds six months to the eligibility and assistance periods of subsidy. To read the bill in its entirety, click here.

House Bill HR 3966

This bill would extend the subsidy program for involuntary terminations and loss of coverage occurring through June 30, 2010. To read the bill in its entirety, click here.