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COBRA Premium Subsidy Extended Yet Again

April 29, 2010

The federal government's subsidy for certain individuals' health insurance continuation premiums has been extended to apply to workers who experience involuntary terminations of employment through May 31, 2010. Previously, the subsidy was set to expire for terminations of employment occurring on or after April 1, 2010. Please see our earlier Client Alerts identified below for more information.

As a result of this change, an employee who involuntarily terminates employment from September 1, 2008 to May 31, 2010 may be eligible to receive a 65% subsidy for his or her COBRA premiums for a period of up to 15 months. The Department of Labor has updated its model COBRA notices to reflect this extension.

It remains to be seen whether the governmental subsidy will be extended again. If you have any questions or need assistance, please contact Todd Cleary of the Godfrey & Kahn Employee Benefits Team.

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