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Tuesday
Aug242010

No COBRA subsidy extension on the horizon

It has been more than 10 weeks since COBRA subsidy eligibility expired.  It does not appear that an extension to the 65% COBRA subsidy is likely.  Employers should make sure they are sending a "non-subsidy" COBRA notice to employees who are terminated June 1, 2010 or later.

Remember that individuals who were involuntarily terminated prior to June 1, 2010 will continue to receive the COBRA subsidy for up to 15 months.

Monday
Aug022010

COBRA subsidy eligibility expires June 1, 2010

June 1, 2010 COBRA subsidy eligibility expired June 1, 2010. As of this date, employees who are involuntarily terminated June 1, 2010 or later are not eligible for the 15 month COBRA subsidy. Congress is set to consider another extension (through the end of the year) next week. Employers have two choices:

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Thursday
Jul292010

COBRA Subsidy Ends

U.S. Congress failed to include an extension of the COBRA subsidy in the latest jobs bill.  Employees who are terminated June 1, 2010 or later are not eligible for the 65% COBRA subsidy.

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Wednesday
Mar242010

COBRA Election Period

Lifecare Hospitals v. Health Plus of Louisiana (2005)

The Fifth Circuit Court of Appeals held that a health plan participant may elect to receive Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation benefits after the 60 day minimum election period specified in COBRA if plan documents are silent with respect to the maximum length of the election period.

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