Advertise
Resources
Member, Beacon International Group, Ltd.
Major events in the federal COBRA premium subsidy law
FEBRUARY 2009: President Barack Obama signs into law an economic stimulus bill that establishes a nine-month, 65% federal subsidy of COBRA premiums for employees involuntarily terminated from Sept. 1, 2008, through Dec. 31, 2009. Congressional analysts estimate the subsidy will aid more than 7 million laid-off employees and their families and cost about $25 billion.
DECEMBER 2009: President Obama signs into law a bill that extends the subsidy to workers laid off through Feb. 28, 2010, for up to 15 months. The expanded coverage also applies to individuals whose eligibility had expired and allows them to receive retroactive coverage.
MARCH 2010: Congress approves legislation to extend the subsidy through March 31, 2010. The bill also clarifies that employees who lost group coverage due to a reduction in hours and then were terminated after enactment of the legislation are eligible for the subsidy by meeting certain conditions. Later, the Senate passes a tax bill to extend the subsidy through Dec. 31 2010, but the House takes no action.
APRIL 2010: Lawmakers approve legislation to extend the subsidy to employees laid off through May 31, 2010.
MAY 2010: House passes tax bill approved by Senate in March, but strips the Senate provision to extend the subsidy through Dec. 31, 2010; Senate Democratic leaders reduce the duration of the COBRA subsidy to Nov. 30, 2010, but the full Senate recesses without acting.
JUNE 2010: Sen. Robert Casey, D-Pa., introduces an amendment to a tax bill that would provide up to six months of federal COBRA premium subsidies to employees laid off from June 1 through Nov. 30, 2010. Congress later approves H.R. 4213, but the subsidy is removed from the compromise bill before the vote.