The Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") requires group health plans to permit employees and certain covered dependents who lose coverage as a result of the employee's termination of employment, to elect to continue that coverage for up to 18 months. The American Recovery and Reinvestment Act of 2009 (the "ARRA") provided a 65 percent COBRA health insurance premium subsidy for up to 15 months for those who were involuntarily terminated from their jobs. In April, Congress extended that eligibility thorough May 31, 2010.

In light of the expiration of the COBRA subsidy, employers should not send COBRA Election Notices containing information about the COBRA subsidy to employees terminated on or after June 1, 2010.  However, the House and Senate return from recess on June 7, and could retroactively extend the COBRA subsidy. 

Additional information regarding the COBRA subsidy was published in the February 25, 2009 Harris Beach Legal Alert "Stimulus Bill Creates New COBRA Obligations," the September 11, 2009 Harris Beach Legal Alert "New Laws Expand Continuation Coverage and Dependent Coverage Rights," the December 30, 2009 Harris Beach Legal Alert "New Law Extends COBRA Subsidy," and the March 14, 2010 Harris Beach Legal Alert "COBRA Subsidy Extended Again."

If you have questions about this alert, please contact Daniel J. Moore, the Labor and Employment Practice Group Leader at (585) 419-8626 / dmoore@harrisbeach.com, or Kate Hill at (585) 419-8613 / khill@harrisbeach.com, or the attorney with whom you usually work.

This Legal Alert provides a brief analysis or commentary on matters related to labor and employment law, and does not purport to be a substitute for advice of counsel on specific matters.

Harris Beach has offices throughout New York State, including Albany, Buffalo, Ithaca, Long Island, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Yonkers, and White Plains, as well as Newark, New Jersey and New Haven, Connecticut.