| Congress Extends Subsidized COBRA |
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A new law passed late last year extends both the eligibility period and the coverage for subsidized COBRA benefits.
Under the new law, eligible employees who were involuntarily terminated during the period from September 1, 2008 through February 28, 2010 can apply for COBRA (if otherwise qualified). In addition, the Act also extends the maximum period for receiving the subsidy from nine to 15 months. The Act applies retroactively so that employees who become eligible because of the change in the law have an opportunity to apply for COBRA coverage. There are some rules governing the transitional period but a more formal publication of rules or guidelines is expected soon.
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