Senate Passes COBRA Subsidy Extension

March 10, 2010 ( - The U.S. Senate has approved legislation that would further extend COBRA health insurance premium subsidies, Business Insurance reports.

Under H.R. 4213, the 65%, 15-month federal premium subsidy would be extended to employees involuntarily terminated through December 31. The legislation also would allow employees who first lost group coverage due to a reduction in hours and then were terminated to receive the COBRA premium subsidy, so long as certain conditions were met.

Last week, President Obama signed a measure extending federal subsidies of COBRA health care premiums through the end of March (see Obama Signs COBRA Subsidy Extension).

H.R. 4213 also includes provisions that would provide funding relief for defined benefit plan sponsors (see Senate Passes Pension Funding Relief).