Stroock Special Bulletin
Federal COBRA Premium Assistance Program Extended Again
On April 15, 2010, the President signed the Continuing Extension Act of 2010 (the "Extension Act") into law. The Extension Act extends the availability of premium assistance for health care continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"), first implemented under the American Recovery and Reinvestment Act of 2009 ("ARRA"). ARRA provided for premium assistance from the federal government equal to 65 percent of the COBRA premiums for individuals who were involuntarily terminated from employment and eligible for COBRA coverage through December 31, 2009, or spouses or dependents of such individuals; provided that the individual was not otherwise eligible for group health coverage or Medicare and did not have income above certain limits.
The COBRA premium assistance program has been extended and modified several times since its enactment under ARRA. This Stroock Special Bulletin is to alert clients to the most recent extension of the COBRA premium assistance program and its current scope.