COBRA SUBSIDY EXTENSION
March 2010
On March 2, the Senate passed and the President immediately signed The Temporary Extension Act of 2010, which the House had previously passed on February 24, 2010.
The Act includes further extension of the COBRA subsidy program to include employees involuntary terminated through March 31, 2010.
The Act amends the subsidy program to clarify that employees are entitled to the subsidy if they originally lost coverage as a result of a reduction in hours and then were terminated between September 1, 2008 and March 31, 2010.
Employees who lose coverage during the September 1, 2008 to March 31, 2010 period as a result of a reduction of hours and then are involuntarily terminated after March 2, 2010 are treated as having an additional qualifying event at such termination. Employers are required to provide additional notices to the individuals affected by this change to notify them of this additional election opportunity.
Sharon Hobbs practices in the areas of business law, employment law and estate planning.
© 2010 Rinke-Noonan.
This article is a general discussion of legal issues and is not intended to be legal advice. We would be pleased to review the specific facts and law regarding any given legal matter.
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