Although Congress will likely extend the COBRA subsidy under the American Recovery and Reinvestment Act of 2009 (ARRA), they did not pass legislation in time to avoid the subsidy’s March 31, 2010, expiration date.
Short-term extension legislation, which would have provided another month of eligibility for the COBRA subsidy program, was not approved by the Senate last week before the U.S. S
enate and House of Representatives adjourned for a two-week recess.
Congress will reconvene on April 12, 2010, to consider an extension of unemployment and COBRA benefits retroactive to April 1.
Without an extension, employees laid off after March 31, 2010, will not be eligible for the COBRA premium subsidy. The subsidy pays 65 percent of an individual’s COBRA premiums for up to 15 months.