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Member, Beacon International Group, Ltd.
WASHINGTON—A law that provided greater federal health insurance premium subsidies, such as COBRA coverage, to workers who lose their jobs due to foreign competition and older retirees in failed pension plans has expired due to congressional inaction.
A 2002 law created the subsidy, known as the Health Coverage Tax Credit, and set the tax credit at 65%. In 2009, a stimulus law raised the tax credit to 80% through Dec. 31, 2010, and Congress late last year approved a stopgap extension through Feb. 12, 2011.
But lawmakers last week could not agree on another extension, so the subsidy reverted to the prior 65%, effective Feb. 13.
Aside from those who lose their jobs due to foreign competition, the subsidy is available to participants who are at least age 55 whose pension plans have been taken over by the Pension Benefit Guaranty Corp.
Several measures have been introduced to extend the 80% subsidy, including one, S. 308, by Sen. Robert Casey, D-Pa., that would continue the subsidy to July 1, 2012.
WASHINGTON—After a significant modification, Congress has given final approval to legislation that would give a six-week extension to a federal law that subsidizes health insurance premiums, such as for COBRA coverage, to workers who lose their jobs due to foreign competition and older retirees in failed pension plans.