COBRA subsidy eligibility date extended to May 31, 2010
On February 17, 2009 as part of the American Recovery and Reinvestment Act (ARRA), Congress passed a COBRA subsidy providing a 65% premium reduction for certain qualified individuals. Eligibility for the subsidy was originally set to expire on December 31, 2009, however, there have been a series of extensions. The most recent extension occurred on April 15, 2010, with Congress passing the Continuing Extension Act of 2010. The act extends the COBRA subsidy eligibility date to May 31, 2010. Individuals with COBRA qualifying events on or before May 31, 2010 that meet the following requirements will be eligible for the subsidy:
- COBRA has to be elected.
- Loss of employment was involuntary.
- Loss of employment was between 9/1/2008 and 5/31/2010
- Participant is not eligible for other group health care (through new job or spouse coverage)
- Participant is not eligible for Medicare.
There are also some income thresholds to consider. If a single person exceeds $125,000 annual income or a married couple exceeds $250,000, all or part of the premium reduction may be recaptured by an increase in the income tax liability for the year. If this is the case it may be beneficial for the participant to waive the subsidy.
We expect further extensions on the subsidy throughout the remainder of the year and will keep you updated as these events take place.
If you have any questions on this latest extension or the COBRA process in general, please feel free to contact your COBRA Administrator by calling 513.573.4646 or 888.993.4646.
