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2 Bills Seek To Extend COBRA Benefits

November 18, 2009

Washington – Two bills were introduced in Congress that aims to extend the government’s 65% subsidy of COBRA insurance premiums that is due to expire December 31.

The stimulus package subsidizes COBRA premiums for nine months starting from September 1, 2008 till the end of this year.

With the impending expiry of the subsidy, the bill seeks to answer concerns that many people may opt to drop their coverage instead of paying the full amount after Dec. 31.

The first bill, H.R. 3930, which was sponsored by Rep. Joe Sestak, D-Penn., proposes to extend the maximum length of federal COBRA benefits from 18 to 24 months.

The bill also seeks to extend the current 65% government subsidy to 15 months and would apply to people who lost their jobs or whose hours were reduced within April 1, 2008 and June 30, 2010.

The second bill, S.2730, was introduced by Senators Sherrod Brown (D-Ohio), Robert Casey (D-Penn), Al Franken (D-Minn.) and Sheldon Whitehouse (D-R.I).

The bill also proposes to extend the government subsidy to 15 months, which is until June 30, 2010.

Like the house bill, it also includes workers who had an involuntary reduction of work hours.

The main difference of this bill is its goal to increase the government’s subsidy to 75%.

The two bills are now awaiting action from the two houses.

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