As you are probably aware, Congress has passed an extension of unemployment benefits through November 30, 2010. Unlike prior extensions of unemployment benefits, this extension does not also extend the eligibility window for the COBRA premium subsidy.
As a result, individuals who become eligible for COBRA coverage due to an involuntary termination that occurs on or after June 1, 2010, are not eligible for the COBRA premium subsidy. COBRA qualified beneficiaries who had an involuntary termination of employment (as that term is defined for purposes of the COBRA subsidy) on or before May 31, 2010, can continue to receive the subsidy for up to 15 months, as long as they remain eligible for it.
Please contact any member of Miller Johnson’s Employee Benefits practice group if you have questions regarding COBRA coverage.