Cobra Stimulus Scheduled to End

December 16, 2009

House has acted to extend benefit but Senate has not

Under the American Recovery and Reinvestment Act of 2009 (ARRA), certain individuals who are eligible for COBRA continuation will be coming to the end of the subsidy. The eligibility time period is set to expire on December 31, 2009. Eligible individuals are entitled to receive the full 9 months as long as they remain eligible. The House has passed a bill with an amendment increasing the period for the 65% subsidy from nine to 15 months and extending the eligibility period for those that involuntarily lose their jobs through February 28, 2010. The Senate has yet to take this up for a vote.

Physicians that accept Medicare patients were given a two-month extension from the scheduled 21 percent Medicare reimbursement cut that was scheduled for January 2010. The Senate voted down an amendment that would have stopped the subsidy cuts going to private insurers for the Medicare Advantage program. Some argue that this cut will result in cuts to services of Medicare Advantage policyholders.

To read more in the December 17, 2009 NAHU Newswire click here .

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