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• The subsidy is now available to those who involuntarily lose through jobs through February 28, 2010. The prior legislation applied to those who lost their jobs beginning September 1, 2008 through December 31, 2009.

• The subsidy is now available for 15 months which means that the subsidy is available for an additional six months for those who lost the subsidy after nine months.

• Beneficiaries whose subsidies ran out and who did not continue COBRA because they did not want to pay the full premium, now have a second opportunity to go back and elect coverage.

• The legislation also makes it clear that an individual will be eligible for the subsidy provided the qualifying event that makes the individual eligible for the subsidy occurs on or before February 28, 2010. Prior to this legislation, there was some disagreement as to whether the determinative date was the date of the qualifying event or the date the employee lost coverage.

As before, only employees who have been involuntarily terminated from employment will be eligible for the subsidy. In addition, as before, the subsidy is not available for qualified beneficiaries who become eligible for coverage under another “group” health plan or Medicare.

1. Employers are required to notify current COBRA beneficiaries and future beneficiaries of the new 15 month premium subsidy.
2. Employers should immediately change COBRA election notices to incorporate the new legislation so that the notices reflect that the COBRA subsidy is available for 15 months and that it is available to individuals who have been involuntarily terminated from their employment beginning September 1, 2008 through February 28, 2010.
3. Employers should advise current eligible beneficiaries who have elected the COBRA subsidy that eligibility has been extended from nine to 15 months. The notice must be issued within 60 days from the date the legislation was enacted (February 17, 2010) or 30 days after notice of the extension is provided by the plan administrator, whichever is later.
4. Employers must provide notice to those individuals who did not elect to continue COBRA after their subsidy ended that they have the right to make retroactive premium payments. To continue their coverage, they must pay the 35% of premium cost by 60 days after the date of enactment (February 17, 2010) or, 30 days after notice of the extension is provided by the plan administrator, whichever is later.