Senate Approves $787 Billion Economic Stimulus Package - COBRA Provisions Included

2/14/2009

The Senate approved the $787 billion economic stimulus package Friday. President Obama is expected to sign the stimulus bill into law Tuesday, February 17. Discovery Benefits is tracking the bill very closely and will be communicating with its clients the details of the COBRA provisions and the next steps to take once the final bill is signed.

Among the provisions in the bill are: providing a 65% subsidy for 9 months for eligible individuals involuntarily terminated from employment between September 1, 2008 and December 31, 2009, special enrollment rights for qualified beneficiaries and increased notice requirements. Individuals with modified adjusted gross incomes above $145,000 (single) or $290,000 (couples) would not be eligible for the subsidy.

The conference agreement passed by the House and Senate did not retain the House 55/10 provision allowing for the extension of COBRA coverage. The 55/10 provision would allow individuals 55 years or older and individuals who were employed 10 years or longer to remain on COBRA until they are eligible for Medicare.

It appears that the March 1st effective date is still intact, but with a 60 day grace period to perform retroactive adjustments.

Categories: COBRA