| Additional COBRA Subsidy Extension Announced
The American Recovery and Reinvestment Act of 2009 (ARRA), as amended, provides for premium reductions for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35% of their COBRA premiums and the remaining 65% is reimbursed to the coverage provider through a tax credit. To qualify, individuals must experience a COBRA qualifying event that is the involuntary termination of a covered employee’s employment. The involuntary termination must generally occur during the period that began September 1, 2008 and ends on May 31, 2010. (An involuntary termination of employment that occurs on or after March 2, 2010 but by May 31, 2010 and follows a qualifying event that was a reduction of hours that occurred at any time from September 1, 2008 through May 31, 2010 is also a qualifying event for purposes of ARRA.) The premium reduction applies to periods of health coverage that began on or after February 17, 2009 and lasts for up to 15 months.
This legislation applies to laid-off workers who are covered by Federal COBRA (businesses with 20 or more employees) as well as those covered under Connecticut's state continuation law.
Click below for information on this new extension. | Effective May 5, 2010, Public Act 10-13 extended coverage for certain employees who elect continuation of health coverage for up to 30 months. This change applies to employees covered under Connecticut fully insured small employer and large employer plans. Individuals who are currently on state or federal COBRA as of May 5, 2010, or individuals who experience a qualifying event as of May 5, 2010 are impacted by this law.
Individuals who lose coverage due to a lay-off, termination of employment (except for gross misconduct), leave of absence or reduction in hours, are eligible for extended continuation coverage for up to 30 months. Click below for information on this new extension. |
