Are you tired of the extra administrative burden of the COBRA subsidy for recently laid-off employees? Looking forward to its ending on December 31?
Not so fast. The government subsidy on COBRA payments may not be gone for good.
Bills have been introduced in both the House and Senate to extend the subsidy. A COBRA extension could also be part of the job-creation bill that House Democrats hope to pass by January at the latest.
The current subsidy pays 65% of group health premiums for people involuntarily terminated between Sept. 30, 2008, and Dec. 31, 2009. The Senate extension bill would raise the subsidy to 75%. Both Senate and House bills would extend the maximum subsidy period to 15 months from nine months.
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