WASHINGTON—The U.S. Senate approved tax legislation on a 62-36 vote Wednesday that would further extend COBRA health insurance premium subsidies.

Under H.R. 4213, the 65%, 15-month federal premium subsidy would be extended to employees involuntarily terminated through Dec. 31.

The Wednesday vote followed a stopgap extension for employees terminated involuntarily from March 1 through March 31 that President Barack Obama signed into law last week.

The Senate measure, which was introduced as a substitute amendment to H.R. 4213 already passed by the House, also would allow employees who first lost group coverage due to a reduction in hours and then were terminated to receive the COBRA premium subsidy, so long as certain conditions were met.

Other provisions would give employers more time to make required contributions to their pension plans and extend other expiring U.S. Tax Code sections.

The bill now moves back to the House.