Labor & Employment Law — 11/02/09

House bill would extend COBRA continuation coverage for six months

A bill (H.R. 3930) that would extend for six months the maximum Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage period for individuals who were involuntarily terminated between April 1, 2009, and December 31, 2009, was introduced on October 26 by Representative Joe Sestak (D-Penn). Called the Extended COBRA Continuation Protection Act of 2009, the bill would also amend the American Reinvestment and Recovery Act of 2009 to extend the eligibility period and maximum assistance period for COBRA premium assistance.

“As a result of the compromises required to pass the Economic Stimulus Bill, 900,000 fewer Americans have re-entered the workforce than would have under the version I initially supported,” said Representative Sestak. “There are 14.9 million Americans looking for work and 5.4 million Americans facing unemployment of longer than 27 weeks. As a result, some of the unemployment programs included in the stimulus have proven insufficient to serve the urgent needs of so many working families. For example, federal assistance for unemployed workers’ COBRA premiums will end as soon as November, but many of these workers have yet to find a new job despite seeking employment. We need to continue to provide these benefits during this especially difficult time for job seekers.”

According to a release by Sestak’s office, the bill would extend COBRA benefits in three ways. First, it extends by six months — from 9 to 15 months — the total allowable time an unemployed worker can receive COBRA premium assistance. This will allow workers who enrolled in the program in February to continue on until at least May 2010. Second, it extends this assistance to individuals who are involuntarily terminated between January 1 and June 30, 2010. Third, it extends eligibility for traditional COBRA coverage an additional 6 months, from 18 to 24 months, for those terminated at the beginning of the economic recession in 2008. No extended COBRA premium assistance or extended COBRA benefits would extend beyond December 31, 2010.

The bill has been referred to the House Committees on Education and Labor, Energy and Commerce and Ways and Means.

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