COBRA subsidy extended to May 31

Posted on May 4, 2010

The subsidy for COBRA health insurance premiums, which expired March 31, 2010, has been extended through May 31, 2010.

 COBRA is the law that allows former employees to keep their employer’s health insurance for a certain period if they pay the premiums. The subsidy provides that the government will pay 65% of the premiums, and the individuals who lost their jobs must pay only 35% of the premiums.

 The “Continuing Extension Act of 2010” was signed on April 15. It provides a continuation of the 65% subsidy for workers who lose their jobs between September 1, 2008, and May 31, 2010. The subsidy is available for up to 15 months. Workers whose hours were reduced and who later lost their jobs may, in some cases, also qualify for the subsidy.