CONGRESS APPROVES COBRA EXTENSION. On December 21, 2009, President Obama signed legislation extending the COBRA premium subsidy. The extension provides that individuals who become eligible for COBRA because of an involuntary termination occurring during the period from September 1, 2008, through February 28, 2010, will be eligible for the subsidy if they elect COBRA. The new law contains provisions regarding individuals whose 9 month subsidy period expired before the extension. These individuals may have let their COBRA coverage lapse because it was too costly without the subsidy. Others may have kept the coverage and started paying the full amount of the premium. They will be able to benefit from the extension retroactively. Those who failed to pay their COBRA premiums once the initial subsidy period expired can retroactively pay the premiums to maintain COBRA at subsidized rates. Those who paid the full amount of the COBRA premiums after the subsidy period ended, but are now eligible for additional assistance, must be either reimbursed by the employer for the excess premium or provided a credit that reduces later premium payments.

The legislation includes additional notice requirements for the subsidy extension. All members are urged to contact your insurance provider for details if you have not already been notified of the changes.