by Jackie Simmonds, NEJS Blog Editor

On December 16 the U.S. House of Representatives passed the COBRA subsidy extension and expansion.  The bill now goes to the Senate where expectations are they will act quickly before the premium aid program expires at the end of the year.

Earlier this year Congress had stepped in to change the existing COBRA program to provide a government paid subsidy that matched 65% of an unemployed person’s premiums for nine months per individual.  That original program is set to end Dec. 31. The bill just passed in the House extends that nine-month period to 15 months. If you have already run past the nine-month period and have lost your insurance you would be able to get it back for the remainder of the 15-month period.

For those of us who are unemployed we have a great appreciation of the American Recovery and Reinvestment Act, since enacted in February it is estimated that it has helped to keep 7 million people covered by health insurance.

The package that is now before the Senate includes:

• Change the end date of eligibility for the COBRA subsidy from December 31, 2009, to February 28, 2010.

• Expand COBRA premium subsidy period to 15 months (from the current nine months).

• Allow a period for the retroactive payment of premiums for individuals whose subsidy period expired on November 30 and who did not pay their premium for December coverage. The retroactive period is 60 days, beginning with the enactment of the provision or, if later, 30 days after provision of the notice.  The same refund/credit rules under the original bill apply to any eligible individual whose subsidy expired in November and who has since paid the full COBRA premium.

• Require a special notice to all assistance-eligible individuals who are on COBRA on or after November 1 or whose qualifying event is a termination of employment occurring on or after November 1 that describes the new 15-month premium subsidy.

• Eligibility for the COBRA subsidy is still only on the involuntary termination of employment occurring on or before the new February 28, 2010, sunset date, without regard to when the COBRA coverage period begins. For employers providing subsidized coverage that defers the COBRA start date, the 15-month period may not begin until well into the future.

Highlights of the current status of the COBRA extension were pulled from several articles which provide more details and redirects to other COBRA related information, to learn more about the extension and how it impacts you read:

House Passes COBRA Subsidy Extension and Expansion, by By John Hickman and Ashley Gillihan in the The Employment Law Post, Human Resources News

US House Passes COBRA Subsidies Extension Awaits Senate Vote, by Jesse A. Hamilton, Insurancenewsnet.com