Legislative Alert: COBRA Premium Subsidy Extended for Two Months

On Thursday afternoon April 15, 2010, the Senate approved H.R. 4851, the Continuing Extension Act of 2010 by a vote of 59 to 38. The House followed that action by passing the bill in the early evening by a vote of 289 to 112. President Obama signed the bill, which provides for a two-month extension of the COBRA premium subsidy (through May 31, 2010). Originally, H.R. 4851 called for a one-month extension (through April 30, 2010) of the COBRA premium subsidy. However, during the debate, the Senate adopted an amendment offered by Finance Chairman Max Baucus, which further extended a number of provisions in the bill, including the COBRA premium subsidy.

It is very likely that Congress will continue this approach – a series of short-term fixes, rather than a longer extension – for the remainder of the year.