COBRA Subsidy Extended To March 31, 2010 and Retroactive to February 28, 2010
Daniel Schwartz from the Connecticut Employment Law blog, reported this morning President Obama signed a bill yesterday extending the COBRA subsidy. The bill which provides a temporary extension of certain programs specifically extends the COBRA subsidy, which had expired on Sunday, February 28, 2010, to March 31, 2010. The bill is retroactive to February 28, 2010.
How does this affect employers? If you terminated any employees on Monday, March 1 and Tuesday, March 2, those employees now fall under the COBRA subsidy and you will need to revisit the information you provided to the former employees and issue an updated COBRA notice.
Because the government keeps extending the subsidy, it is important to speak with your legal counsel about any COBRA-related questions before terminating employees, so you have the most up-to-date information.
