Legal Issues Impacting Your Business

COBRA Subsidy Extended Through May

Congress has passed, and the President has signed, another temporary extension of the COBRA subsidy through May 31, 2010. An individual who loses coverage as a result of an involuntary termination (or reduction in hours if followed by an involuntary termination) between April 1 and May 31 will be eligible for up to 15 months of the 65% subsidy. Employers must provide notice of the subsidy to any individual who experiences a qualifying event through May 31, 2010.

Employers who provided COBRA notices on or after April 1 will need to provide these individuals with another notice notifying them that the subsidy has been extended through May 31, 2010.

For more information, please contact Susan Freed at 515.288.2500.