The legislation to extend and enhance the COBRA subsidy that was introduced two weeks ago in the House and last week in the Senate has a possible twist that cost employers more money. The proposed legislation – S.2730 in the Senate and HR. 3930 in the House – would continue COBRA healthcare coverage for another six months for those who have been laid off and their families.
The twist is that the subsidy would increase from 65% to 75% what’s unclear is whether the increase would apply to all COBRA participant that are currently receiving the subsidy or the newly unemployed or both.
Regardless employers will need to prepare for the changes and administration of this extension. I will keep everyone in the loop as to the status of this change.