Obama Approves COBRA Subsidy Extension

On Monday, President Obama signed into law the Fiscal Year 2010 Defense Appropriations Bill (H.R. 3326), which includes provisions affecting the federal COBRA subsidy program. The bill extends the 65 percent subsidy duration period to eligible individuals from nine to 15 months and also extends the COBRA coverage eligibility date from December 31, 2009 to February 28, 2010. Eligible workers - those involuntarily terminated between September 1, 2008 and December 31, 2009 and formerly covered under an employer's group health plan - now include those who are laid off between January 1 and February 28, 2010.

The Wall Street Journal reports that, "the subsidy is provided in the form of a payroll tax credit to employers with 20 or more workers."

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