COBRA Premium Subsidy Extended Again

On April 15, 2010, President Obama signed into law another extension of the COBRA premium assistance program. Under the latest extension, the COBRA premium subsidy will be available to eligible individuals who are involuntarily terminated from employment through May 31, 2010. The subsidy had previously expired and, until extended, did not apply to involuntary terminations after March 31, 2010. Because the latest extension is retroactive, those employees involuntarily terminated on and after April 1, 2010 must be notified of their right to elect COBRA and receive the subsidy. The subsidy eligibility rules have not been changed.