Senate Approves Bill Extending COBRA Benefits

On Wednesday, the Senate passed by a 62 to 36 margin the Tax Extender Act (H.R. 4213), legislation that would extend until Dec. 31, 2010 the 65 percent premium COBRA subsidy.  The program is set to expire in the coming weeks.  On Tuesday, the Senate voted 66-34 to limit debate on this bill, which was introduced by Sen. Max Baucus (D-MT) as an amendment (S. Amdt. 3336) in the nature of a substitute to the tax extender bill the House of RepresentUnited_States_Capitol_dome_daylight(2).jpgatives passed in December.

In addition to extending the premium COBRA subsidy until the end of the year, the bill makes certain technical changes to the program itself. Specifically, the bill makes the following clarifications, among others:

  • Adds a new section clarifying special rules in the case of individuals losing COBRA coverage due to a reduction in hours;
  • Clarifies the period of assistance; and
  • Adds a provision stating that the government or the individual may bring a civil action to enforce applicable provisions of this law, and provides that the Secretary may assess a penalty of up to $110 per day against a plan sponsor or health insurance issuer for each violation.

Littler's D.C. Employment Law Update blog has the complete story on the Senate's bill

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.