The House of Representatives has approved legislation to once again temporarily extend eligibility for a federal COBRA health insurance premium subsidy program.
H.R. 4851, proposed by Ways and Means Committee Chairman Sander Levin, D-Mich., and approved by the House on March 17, would extend eligibility beyond March 31 to employees involuntarily terminated between April 1 and April 30.
Individuals eligible for the subsidy program pay only 35 percent of their COBRA premiums; the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage that began on or after February 17, 2009 and lasts for up to 15 months.
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On March 2, Congress passed the Temporary Extension Act of 2010 (TEA) and changed the stipulations for qualifying events. Eligibility was extended to those who experienced a reduction of hours that occurred at any time from September 1, 2008 through March 31, 2010, or was involuntarily terminated between March 2 and March 31 of this year.
Get more: The U.S. Department of Labor has released an updated fact sheet, explaining the COBRA premium reduction.
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