March 04, 2010
Obama Signs Stopgap COBRA Subsidy Extension
On March 2, 2010 President Obama signed into law legislation that provides a stopgap, 31-day extension of federal subsidies of COBRA health care premiums.
The measure was approved earlier Tuesday by the Senate on a 78-19 vote, while the House cleared it last week.
Under H.R. 4691, the 65%, 15-month premium subsidy for laid-off workers is extended to those involuntarily terminated from March 1 through March 31.
Without the extension, employees laid off after Feb. 28 would have been ineligible for the subsidy.
The measure also will allow employees to receive the subsidy if they first lost group coverage due to a reduction in hours and then were terminated after enactment of the legislation, if certain conditions are met.
Meanwhile, the Senate will continue consideration of legislation, H.R. 4213, that would extend the premium subsidy to employees laid off through Dec. 31, 2010.
As more information becomes available we will notify you of any changes or developments.
Please contact your A.E. Mourad Agency, Inc. representative with any questions.
A.E. Mourad Agency, Inc.
28277 Dequindre, Madison Heights, MI 48071
Phone: (248) 336-1600
Fax: (248) 336-1607
Web: www.aemourad.com