Friday, July 2, 2010

COBRA Federal Subsidy update

Although Congress has extended the COBRA subsidy four times as part of the amended ARRA they have failed to extend it a fifth time beyond May 31st, 2010. Therefore May 31st, 2010 is the last date someone can be terminated from employment and may be eligible for the federal subsidy. Anyone terminated after this date is currently NOT eligible for the financial assistance previously available.

We will continue to monitor this situation and provide updates if an when anything changes.

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.
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2 comments:

  1. EllisJuly 13, 2010 at 7:43 AM

    July 13th,2010
    I understand that Congress is going to re-introduce the Cobra Subsidy extension. With Senator Casey bring up extending it until November 2010. Is this true?

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  2. IFSAugust 10, 2010 at 2:17 PM

    According to today's Star Global Tribune (http://starglobaltribune.com/2010/unemployment-extension-update-cobra-subsidy-still-unlikely-912)-
    "House lawmakers are returning for another session despite being just one week into their month long recess, in order to act on a proposal which aims to provide states with up to $16 billion in extra federal Medicaid assistance........Newly laid-off workers will however be disappointed to learn that the COBRA subsidy has not been included in this bill. .......Senators Sherrod Brown (D-Ohio) and Bob Casey (D-Penn) are planning on reinstating the COBRA subsidy through a separate piece of legislation, and attempting to pay for it by eliminating a tax break."

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