The COBRA health insurance premium subsidy period was recently extended to May 31, 2010, thanks to the passing of the Continuing Extension Act of 2010. The COBRA subsidy is available for up to 15 months.
This act also provides that an individual who previously had a reduction in hours but did not elect (or elected and then discontinued) COBRA continuation coverage, will have a second opportunity to elect continuation coverage and qualify for the COBRA subsidy if the individual’s employment is subsequently involuntarily terminated between the dates of September 1, 2008, and May 31, 2010. The individual will be eligible for the COBRA subsidy as of the date the individual’s hours were reduced rather than when their employment ended.