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Congress is poised yet again to consider another extension of the current May 31, 2010, eligibility deadline for the COBRA subsidy program provided under the American Recovery and Reinvestment Act (ARRA).
Eligibility for the Federal COBRA premium subsidies would be extended through year-end and employers would have more time to fund their pension liabilities under a tax bill that the House could vote on this week.
Under the measure, the “American Jobs and Closing Tax Loopholes Act”, the 65 percent, 15-month COBRA premium subsidy program would be extended to involuntarily terminated employees through December 31, 2010.
Without congressional action, employees who lose their jobs after May 31 will not be eligible for the subsidy.
If passed by the House, the act would move to the Senate for another vote. It remains uncertain when the proposed act will be reconciled in a final bill and seems unlikely that this will come before Congress breaks for its recess May 29 through June 6, 2010.
