COBRA Subsidies Live On

COBRA Subsidies Live On

Congress keeps tweaking COBRA subsidies to deal with the sustained unemployment rate.  In December the COBRA subsidy was extended until the end of February.  People eligible for the subsidy will have to pay only 35% of the monthly premium, while the employer pays the rest, and takes the cost of the 65% premium as a credit against withholding taxes.   Congress added a month, and has not been trying to extend it further.  Last week the House of Representatives passed a bill to extend COBRA subsidies until the end of April.  Meanwhile the Senate passed a bill to extend the subsidy period through to the end of 2010.  Both bills must be passed by the other house, though it looks as though there will be no problem making the April extension into law in time.  American Workers, State and Business Relief Act of 2010.

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