New Unemployment Relief Bill Would Extend COBRA Coverage

A new bill introduced in the Senate would enable certain qualified individuals enrolled in COBRA to extend their health care coverage for an additional 12 months. The Coverage Continuity Act of 2009 (S. 29) provides that qualified beneficiaries whose COBRA eligibility ends between January 1, 2009 and December 31, 2009 can elect 12 additional months of coverage provided that they are continuously enrolled under COBRA. The purpose of this bill is to provide continued health care and tax credits for those who are unemployed.

In addition to the COBRA extension, this bill amends the Internal Revenue Code of 1986 to increase the tax credit for health insurance costs of eligible individuals and provides this tax relief to those covered under COBRA.

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.