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COBRA subsidies expire with Congress in recess

Christian Schappel
by Christian Schappel
June 2, 2010
1 minute read
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insurance-building
On June 1, COBRA subsidies lapsed for the second time as Congress took a recess.
The Senate adjourned for its Memorial Day recess on Friday afternoon without taking any action in regards to the expiring subsidies.
Removed from legislation
A provision to extend the 65% premium subsidy through the end of the year was part of The American Jobs and Closing Tax Loopholes Act of 2010 — until the extension measure was shrunk by one month (to Nov. 30, 2010) and eventually removed from the legislation altogether to appease fiscally conservative House Democrats.
The House did eventually pass the slimmed down bill — but without extending the subsidies.
Could still happen
Both the Senate and House will return from recess the week of June 7. And at that time it’s still possible the subsidies could be extended retroactively to June 1 — much like they were in April after they expired while Congress was on its spring break.
We’ll keep you posted.

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