Bill Would Extend COBRA Coverage by Six Months

Rep. Joe Sestak (D-Pa.) has introduced a bill that would extend by six months the maximum COBRA continuation coverage period for individuals who were involuntarily terminated between April 1, 2009 and December 31, 2009, and amend the American Reinvestment and Recovery Act of 2009 (ARRA or “Economic Stimulus”) by extending the eligibility and maximum assistance periods for the 65 percent COBRA premium assistance available under ARRA. According to a press release, the Extended COBRA Continuation Protection Act of 2009 (H.R. 3930) would extend COBRA benefits in three ways. First, the bill would extend from 9 to 15 months the total allowable time an unemployed worker can receive COBRA premium assistance. Second, the bill extends this assistance to individuals who are involuntarily terminated between January 1 and June 30, 2010. Third, it would extend eligibility for traditional COBRA coverage an additional 6 months, from 18 to 24 months, for individuals terminated at the beginning of the economic recession in 2008. No extended COBRA premium assistance or extended COBRA benefits would extend beyond December 31, 2010.

In a statement, Sestak said:

 . . .some of the unemployment programs included in the Stimulus have proven insufficient to serve the urgent needs of so many working families. For example, federal assistance for unemployed workers’ COBRA premiums will end as soon as November, but many of these workers have yet to find a new job despite seeking employment. We need to continue to provide these benefits during this especially difficult time for job seekers.

This bill has been referred to the House Committees on Education and Labor, Energy and Commerce, and Ways and Means.
 

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.