Federal Cobra Subsidies Lapse

06.01.10 |

Federal COBRA subsidies officially lapse today. The U.S. Senate adjourned for its Memorial Day recess last Friday without passing an extension of the subsidies. Later Friday, the U.S. House passed a slimmed-down jobs bill that temporarily extended a number of federal programs, but it left out a COBRA extension over concerns about the growing federal deficit. Without the extension, jobless Americans who were fired before May 31st will see their COBRA subsidies expire after 15 months. Workers who are laid off from today on are not eligible to have the government subsidize 65-percent of their health insurance premiums. The House and Senate may take up legislation to extend the COBRA subsidies retroactively when they return from their recess next week.