AZ USA: Monday, April 19 - 2010
COBRA Subsidy Extended Through May 31, 2010
On April 15, 2010, the President signed H.R. 4851 which extends the subsidy eligibility date from the current March 31, 2010 (per the Temporary Extension Act of 2010) to May 31, 2010. Employees who are “involuntarily” terminated between September 1, 2008 and May 31, 2010 may be eligible for reduced rates (that are 65% subsidized by the Federal government).
Changes made by the H.R. 4851 are as follows:
- The Act changes the end date to whom should be offered COBRA premium subsides from 03/31/2010 to 05/31/2010.
- The Act extends notifying terminated employees who previously experience a Reduction in Hours Hours after September 1, 2008 and is then involuntarily terminated between March 2, 2010 and March 31, 2010 to May 31, 2010.
COBRA Solutions has made the necessary changes to the COBRA Administration Manager software and the new version is available for download by our current COBRA Solutions customers.