Bill would extend COBRA subsidy
November 12, 2009 by Christian SchappelPosted in: COBRA, Health care, In this week's e-newsletter - benefits, Latest News & Views, Pay and benefits
Looks like the COBRA subsidy may continue to be a thorn in the side of HR and benefits pros.
Legislation introduced in the House of Representatives by Rep. Joe Sestak (D-PA) would extend the subsidy and make those laid off from Jan. 1, 2010 through June 30, 2010 eligible.
Under the proposed bill, the subsidy would be provided for up to 15 months.
Currently, the subsidy is available for up to nine months for people who lost their jobs after Sept. 1, 2008 — and it won’t be available to employees laid off after Dec. 31, 2009.
Without an extension, people who began collecting the subsidy March 1 — when it first became available — will lose it at the end of November.
Tags: benefits, COBRA, House of Representatives, HR, Joe Sestack, subsidy
November 18th, 2009 at 9:38 am
anytime unemployment benefits are extended unemployment rates go up and stay up. past time that the business-community recognize this downward spiral and implement planning processes that eliminate this condition. the future taxes will strangle us all.
November 19th, 2009 at 1:54 pm
The verbiage above is inarticulately worded and has the potential to be somewhat misleading. No former employees “collected” a subsidy–they received a break in the premium price. Using the word “lose” implies that their COBRA coverage will be dropped. Not so. COBRA rules for eligible time (18 or 29 months for employees, 36 for dependents) still apply.
November 19th, 2009 at 2:12 pm
I don’t mind unemployment for those who have lost their jobs because the position was eliminated or they were laid off. I’m tired of employees getting unemployment benefits because they WOULDN’T get to work on time and got fired and then we are on the hook for 65% of their health coverage, which is more than current employees get. It has become an entitlement program that has gotten out of control.