COBRA Subsidy Extended Again!
Late in the day on April 15 or Tax Day as many of us generally think of it, President Obama signed a bill extending the COBRA subsidy to May 31, 2010. The new bill is again retroactive, covering any employees who were terminated or laid off between April 1-April 15. Daniel Schwartz from the Connecticut Employment Law blog, discusses the President’s actions in more detail.
If you terminated or laid-off any employees between April 1 and April 15, 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.
This is the second time the COBRA subsidy has been extended and there is a chance it could be extended again, so it is important to speak with your legal counsel and obtain the most updated information about COBRA before terminating or laying off employees.
As a health insurance agent I've seen the COBRA Subsidy help many individuals and families that have been laid off as a result of the recession. As an employee benefits broker I've seen the same subsidy wreak havoc on cash flow for already struggling companies. This game of on again off again really does little to help anyone. Unless COBRA is the only option and/or a significant savings we typically recommend that our clients look at an individual health insurance plan.
Dennis Carlson
www.bespokebenefits.com
www.insuranceninja.com