Obama Administration Proposes another COBRA Subsidy Extension
February 2, 2010 (PLANSPONSOR.com) – The Obama administration has
proposed an additional extension of the availability of COBRA premium subsidies
for employees involuntarily terminated.
Business Insurance reports that under the latest
extension, employees who are laid off from March 1, 2010, through Dec. 31,
2010, would be eligible for the 65% premium subsidy for up to 12 months. The proposal
is embedded in the administration's proposed federal budget for fiscal 2011,
according to the news report.
Benefits experts expect lawmakers to be receptive to the
extension. "As long as unemployment remains at high levels and access to
health insurance coverage remains spotty, the willingness to extend COBRA
assistance will remain strong and persistent. It also appeals to members of
Congress on both sides of the aisle," said Frank McArdle, a consultant with
Hewitt Associates Inc. in Washington, according to Business Insurance.
Under current law, employees laid off from Sept. 1, 2008,
through Feb. 28, 2010, can receive the premium subsidy for up to 15 months (see
EBSA Adds COBRA Subsidy Extension Materials).
An analysis from
Hewitt Associates indicated that average monthly enrollment rates in COBRA
health care plans among subsidy-eligible employees increased by 20 percentage
points since the subsidy was enacted (see Subsidy Boosts COBRA Enrollments).
Rebecca Moore
editors@plansponsor.com