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President Obama Signs Extension of COBRA Subsidy

On December 19, President Obama signed legislation extending the eligibility period for the Consolidated Omnibus Budget Reconciliation Act (COBRA) premium reduction through February 28, 2010 - an additional two months - and the maximum period for receiving the subsidy for an additional six months. "Millions of unemployed Americans and their families will be better able to afford and keep their health benefit coverage because of this new law," said Assistant Secretary of the Employee Benefits Security Administration Phyllis C. Borzi. "However, it is critical that individuals that feel they are eligible for the additional premium subsidy continue to pay 35 percent of premiums to retain their right to the extended subsidy, even if they have not yet received notice from their employers about the extension."

The Department of Labor is currently working to gain approval of model notices that reflect the extension of the COBRA subsidy.

Source: U.S. Department of Labor