COBRA Subsidy Not Extended

This week has been rather slow on the health care reform front - but there have been developments regarding the COBRA subsidy that we want to share with you.

On July 22nd, the Unemployment Compensation Extension Act was signed by the President, however, it did NOT include an extension of the COBRA premium subsidy. Although the subsidy had ceased on May 31, 2010, there had been discussion about its continuation.

What does this mean?

Model notices from the Department of Labor have been updated, and now we have a definitive answer that the COBRA subsidy will not continue. Although not directly related to employee benefit plans, Emergency Unemployment Compensation (EUC) has been continued through April 30, 2011.

Is there anything I have to do?

No. If you need a model notice, use the link above for the most recent version. We'll see you next week!