COBRA subsidy law extended again

President Barack Obama last week signed into law legislation that provides a 31-day extension of federal subsidies of COBRA health care premiums. The measure, H.R. 4691, extends the 65%, 15-month premium subsidy to employees involuntarily terminated from March 1 through March 31. This week, the Senate is expected to resume consideration of legislation, H.R. 4213, which would extend the premium subsidy to employees laid off through Dec. 31.

Greenberg says finite charges time-barred

Former American International Group Inc. chief Maurice Greenberg says any possible charges he may face related to sham finite reinsurance transactions are time-barred. As a result, according to a motion filed last week by Mr. Greenberg, he now wants to testify about the transactions in a suit brought against him by former New York Attorney General Eliot Spitzer. Mr. Greenberg, who was identified by prosecutors as an unindicted co-conspirator in the trial of former General Re Corp. and AIG executives in the 2000-2005 reinsurance deals, said the statute of limitations on any potential charges expired Feb. 21, and that he now requests the right to testify on those matters, according to court documents. In 2008, Mr. Greenberg asserted his Fifth Amendment right against self-incrimination during pretrial testimony in a civil suit filed by New York state. A hearing in Manhattan Supreme Court on Mr. Greenberg's request is scheduled for this week.

NFIP extended through March 28

President Obama has signed into law a measure that extends the National Flood Insurance Program through March 28. The NFIP extension is part of a measure that temporarily extends a variety of federal programs. The NFIP has undergone several short-term extensions because the House and Senate cannot agree whether the program should be expanded to include windstorm coverage, an expansion that insurers oppose.

Former AIG general counsel joins DLA Piper

Former American International Group Inc. General Counsel Anastasia Kelly has joined the Washington office of law firm DLA Piper as counsel. Ms. Kelly resigned from AIG in December to protest federal salary caps imposed on executives of companies that took government bailout funds.

PBGC taking over auto pension plan

The Pension Benefit Guaranty Corp. is taking over the underfunded pension plan New United Motor Manufacturing Inc., an assembly operation jointly owned by Toyota Motor Corp. and Motors Liquidation Corp., the liquidating entity that remained after General Motors Co. emerged from bankruptcy. The plan, which covers United Auto Workers union members and has about 5,800 participants, is 55% funded with $161 million in assets and $292 million in liabilities. The PBGC expects to cover $126 million of the $131 million funding shortfall.

N.M. bill would set health care spending

Health insurers and health maintenance organizations selling group coverage in New Mexico would be required to spend at least 85% of every premium dollar on health care services under legislation Gov. Bill Richardson is expected to sign. H.B. 12, which would take effect in 2011, would require insurers that fail to comply with the 85% reimbursement requirement to issue a dividend or credit against future premiums to all policyholders in an amount sufficient to make up for any shortfall.