Revamped Tax Bill Omits Extenstion of COBRA Subsidy

UPDATE: An amendmendment to this bill was proposed by Sen. Robert Casey, D-PA on Wednesday, June 9 and would extend eligibility for the subsidy through Nov. 30, 2010.

It appears that eligibility for the 15 month, 65% COBRA subsidy will end on May 31, 2010. Legislators who are becoming more and more leery of approving measures that would deepen the federal deficit did not mention the subsidy in the most recent version of H.R. 4213.

The Senate version of the bill originally proposed that eligibility be extended to employees laid off through the end of 2010. The House subsequently removed that from the bill before passing and sending it back to the Senate. The projected cost of extending the subsidy was $8 billion.

To read the Business Insurance article on this item click here:
http://www.businessinsurance.com/article/20100608/NEWS/100609919