Continuing Extension Act of 2010
April 15, 2010, Congress passed and the President later signed the Continuing Extension Act of 2010 (the "Act") that extended to May 31, 2010 the eligibility for the 65% premium subsidy for COBRA premiums for individuals that incur an involuntary termination of employment on or before that date. Prior to this Act, the eligibility time period for the COBRA premium subsidy expired on March 31, 2010. This Act modifies the American Recovery and Reinvestment Act of 2009 (ARRA), which was amended by the Temporary Extension Act of 2010 earlier this year.
HRC is currently modifying our systems to comply with these new changes and extension by April 23, 2010. We will be able to provide:
*A modification to include the requisite ARRA subsidy language and modified forms for each individual that incurs a Qualifying Event on or before May 31, 2010.
*The ability to automatically print letters to re-notify individuals who (i) incurred a Qualifying Event on or after April 1, 2010, and (ii) whose COBRA Election Notice or State Continuation Eligibility Notice was printed after April 1, 2010 so that their notice did not incorporate the COBRA premium subsidy offer.
HRC's staff is working carefully on these changes to make sure that we add these new capabilities while maintaining all other capabilities currently in our system. Thank you again for being an HR Concepts' client. We will continue to respond when changes to the COBRA law are enacted.
As a client of HR Concepts, please let us know if any of the qualifying events that have taken place since April 1, 2010 have been involuntary terminations. We will correct your account for these employees and resend their COBRA paperwork.
For additional information regarding the Temporary Extension Act, please see www.dol.gov/ebsa/COBRA
(HR Concepts strives to keep you updated on the regulations and changes that affect all your qualified plans. However, HR Concepts can never provide legal or tax advice. This notification is for informative purposes only and should not be construed as legal advice or guidance. Any questions regarding COBRA laws, an employer is directed to seek their own independent counsel.)