On December 21, 2009, President Obama signed into law the Fiscal Year 2010 Defense Appropriations Act. The Act extends the current nine-month COBRA subsidy for an additional six months, for a total of 15 months. It also extends eligibility for the subsidy to workers who are involuntarily terminated through February 28, 2010. The prior law covered workers involuntarily terminated through December 31, 2009. The Act requires employers to provide current and future COBRA beneficiaries with notice of the extension.

Source: Federal Employment Law Articles

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On April 15, 2010, Congress passed, and the President signed, the Continuing Extension Act of 2010. The Continuing Extension Act of 2010 extends the existing 65% COBRA premium subsidy for employees who are involuntarily terminated through May 31, 2010. The subsidy was originally provided through December 31, 2009, under the American Recovery and Reinvestment Act (“ARRA”), and was previously extended through February 28, 2010, and then March 31, 2010, via the 2010 Department of Defense Appropriations Act and the Temporary Extension Act of 2010, respectively. For information regarding the original COBRA subsidy and the previous extensions, please see our archived E*Bulletins from March 2010, January 2010, March 2009, and February 2009.

On December 19, 2009, President Obama signed the Department of Defense Appropriations Act, 2010 (DDAA), which, among other things, extended and enhanced the COBRA premium subsidy established earlier this year. (See our prior reports from February 19, March 19 and April 8, 2009, regarding the COBRA subsidy.) The DDAA makes five important changes to the COBRA subsidy rules.

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