On December 21, 2009 President Obama signed the Department of Defense Appropriations Act 2010 which included an extension of the ARRA COBRA subsidy.
Initially, the program was scheduled to end for new enrollees December 31, 2009. That date has been extended to February 28, 2010. Also, the maximum time frame to receive the subsidy has been increased from 9 to 15 months.
Managed Benefit Systems will handle the notifications for our COBRA clients. Once again, the law is retroactive and we must notify all COBRA participants of the extension including those who have dropped since November. Last year our notifications were completed seamlessly and well ahead of the deadline, we don't anticipate this year will be any different.
Although there's been no announcement, we're expecting the state will extend the subsidy for Colorado State Continuation as well (that hasn't happened as of today).
Former employees who paid the full amount (for December or January) can be either issued a refund or a credit towards future premiums.
Please remember: When you're filing your taxes and need to know the amount of the 941 subsidy you're entitled to we can print a report and have it to you in a few minutes.
In the coming days we will be updating our software and notices to comply with the new requirements.
Please feel free to contact us if you have any questions.
Thank you again for your business!
