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Prepared by Mike Ewing, J.D.
Director of Research
United Actuarial Services, Inc.
(317) 580-8659
Fax (317) 580-8651
email: mewing@unitedactuarial.com
© United Actuarial Services, Inc. 2010
2010-29
April 16, 2010
COBRA Subsidy Extended Until May 31, 2010
Late yesterday, the President signed into law H.R. 4851, the Continuing Extension
Act of 2010. The law extends the 65% COBRA premium which ended March 31,
2010 through May 31, 2010. Bills are under consideration that would extend the
subsidy through the end of the year. The Senate has passed H.R.
4213, which
would do so, but the House has not voted on it yet.
A copy of H.R. 4851 is available by “clicking here.” The text of just the COBRA
extension is found in Section 3 of the law and is available by “clicking here.”
The
law also provides
short-term extensions of (1) unemployment compensation; (2)
Medicare physician payments; (3) Federal poverty guidelines; (4) flood insurance
programs; and (5) small business loan guarantee programs.
Once again, plans will be required to send out notices of the extended subsidy
coverage and election period. Undoubtedly, the DOL will be issuing revised model
notices and forms and Q&As for guidance.
We will report on any guidance or model notices as soon as such is available.
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CLIENT BULLETIN