As of now, workers involuntarily terminated on or after June 1, 2010, are not eligible for the 65% COBRA premium subsidy. If they choose to elect COBRA coverage, they will be responsible for the full premium amount. Workers that were involuntarily terminated by May 31, 2010, are still eligible for the subsidy, and anyone currently receiving the subsidy is not affected.
The version of the American Jobs and Closing Tax Loopholes Act (H.R. 4213) that was recently passed by the House of Representatives did not include the planned extension of the COBRA premium subsidy, which was omitted at the last minute in order to gain enough votes for passage. The Senate vote on this bill is scheduled for June 7th. If this bill passes the Senate in its current version, then the COBRA subsidy eligibility ended on May 31, 2010. And involuntary termination of employment that occurs after that date will no longer be considered eligible for the subsidy. Of course, there is always the possibility that an extension will be introduced in another bill at a later date.
We will continue to monitor this issue and provide updates as they become available.
