*By Patrick J. Hoban
On April 15, 2010, both houses of the U.S. Congress passed and the
President signed H.R. 4851 which extends unemployment compensation
benefits and ARRA COBRA subsidies. As enacted, H.R. 4851 – now Public
Law 111-157 the “Continuing Extension Act of 2010” (the “CEA”) – extends
unemployment benefits through June 2, 2010 and extends the eligibility
period for ARRA COBRA subsidies for those who involuntarily lose
employment and associated group health insurance coverage through May
31, 2010. This is the third extension of the COBRA subsidies since they
were first established in the American Reinvestment and Recovery Act in
February 2009. CEA also extends federal government funding of
physician Medicare payments and the National Flood Insurance Program.
CEA includes a provision requiring employers to provide supplemental
notice of ARRA COBRA entitlement for employees who involuntarily lost
employment and employer-provided group health insurance coverage between
the March 31, 2010 expiration date of the prior extension and the date
the CEA went into effect on April 15. In short, employers must notify
any employee eligible for the ARRA COBRA subsidy between April 1 and
April 15 due to the passage of CEA of their eligibility for the subsidy
if they have not already done so. The Employee Benefits Security
Administration (“EBSA”), the federal government agency responsible for
administering COBRA benefits, has updated information concerning the
application and enforcement of the pending legislation. (www.dol.gov/ebsa).
*Patrick J. Hoban has extensive experience
in all areas of labor and employment law, with a focus on private and
public sector labor law. For more information about this pending
legislation or other ARRA COBRA or COBRA issues, contact Pat at
216.696.4441 or pjh@zrlaw.com.
