Since February 2009, Congress extended the COBRA subsidy to unemployed workers four times.

The last extension - The Continuing Extension Act of 2010 (CEA) - amended ARRA to further extend the period to qualify for the COBRA premium reduction until May 31, 2010.

The business community has been anticipating another retroactive extension, but the latest effort for any continued COBRA extensions stalled before the Memorial Day recess. While Congress may consider extending the government subsidy, there is no immediate news indicating this is the case, and the longer they wait the more difficult it will be to extend benefits back to 5/31/2010.

  For now, 5/31/10 was the last date of termination from employment for which individuals may be eligible for the federal subsidy. 
  Additionally, 5/31/10 is 15 months following the 3/1/09 start date of eligibility for the first group of people who were covered under this initial COBRA subsidy program.
  The 15-month federal subsidy has ended for individuals who began their COBRA subsidy following termination on 3/31/09.

 

We will continue to monitor this legislation and provide updates when available.