labor lawAdivision of labor law center

As predicted, the federal government extended the COBRA subsidy on March 2, 2010. The Temporary Extension Act of 2010 results in a continued COBRA premium subsidy to American workers who are unemployed through no fault of their own. In addition, the act extends the subsidy from 9 months to 15 months for many affected workers.

The COBRA subsidy extension applies to employees who are involuntarily terminated between September 1, 2008 and March 31, 2010.

Under a new provision of the COBRA subsidy, workers who are terminated involuntarily on or after March 2, 2010 are eligible if that termination follows a qualifying event that was a reduction of hours. The qualifying event must have occurred between September 2, 1008 and March 31, 2010. For example, if an employee’s hours were reduced in November 2009 and he is subsequently laid off after March 2, 2010, he will qualify for the COBRA premium reduction.

The current premium reduction lasts for 15 months and applies to employees who were laid off on or after February 17, 2009. Some of these employees have already had the COBRA subsidy for 9 months. (more…)