Signed into law on April 15, 2010, President Obama has approved another short term extension of COBRA premium subsidies in the Continuing Extension Act of 2010 (H.R. 4851).  This Act further extends eligibility for the COBRA premium subsidy program to individuals who have been involuntarily terminated through

May 31, 2010 and also provides transition relief for those individuals who were involuntarily terminated between March 31, 2010 and April 15, 2010. 

 

The Act also extends unemployment benefits retroactively, including increased payouts and a longer duration of benefits from the Recovery Act through June 2, 2010. Several other programs have also received continued extension.

 

At this time, the Senate has cleared a measure, H.R. 4213, that would extend the COBRA premium subsidy program through December 31, 2010, but this measure is awaiting action by the House.

 

This Employer Alert summarizes key provisions of the Act at this time; we will continue to monitor developments as they occur and report additional information as provisions are clarified in the coming weeks.  In the interim, the Sullivan Benefits team is available to assist you in understanding and implementing these new provisions. 

Sullivan Benefits clients receive COBRA administration services at no additional cost. Whether you currently utilize this service or not, please note we are working on system modification changes with our software vendor, Travis Systems.  New model notices, forms, etc. will be available to you as soon as these changes have been implemented.   .