Labor and Employment Law Blog
December 28, 2009 / President Obama Signs Bill to Expand COBRA Subsidy and Unemployment
On Saturday, December 19, 2009, President Oama signed the Fiscal Year 2010 Department of Defense (DOD) Appropriations Act. The Actl extends and expands the COBRA subsidy program originally enacted under the American Recovery and Reinvestment Act (ARRA) and also extends expanded unemployment benefits through February 28, 2010.
Under the Act, the COBRA premium subsidy period is expanded from nine to 15 months the end date for eligibility for the subsidy is changed from December 21, 2009 to February 28, 2010. Additionally, there is a retroactive period of 60 days for payment of premiums for eligible individuals whose subsidy period expired on November 30, 2009. The Act also clarifies the original COBRA subsidy program, noting that eligibility and notice are based on the timing of the qualifying event.
Unemployment Insurance
The Act also provides an extension and expansion of unemployment insurance benefits. These changes are outlined below. Individuals may file applications for Federal Emergency Unemployment Compensation (EUC) through February 28, 2010, and the period during which individuals may claim and be paid EUC is extended from May 31, 2010 to July 31, 2010. The period during which individuals may qualify for the Federal Additional Compensation (FAC), the extra $25 weekly benefit amount on state and federal unemployment compensation, is extended with weekly payment provided during the phase out period for weeks ending June 30, 2010 to August 31, 2010. The period during which 100% federal reimbursement for weeks of regular federal extended benefit payments for states opting to trigger federal extended benefits based on the Total Unemployment Rate is extended from the current end date of January 1, 2010 to February 28, 2010, with the state option to continue the extended period from May 30, 2010 to July 31, 2010.