COBRA Subsidy Eligibility Extension 2010 Continuing Extension Act Of 2010
COBRA Subsidy Eligibility Period Extended has been extended again. According to the Internal Revenue Service (IRS), U.S. workers who were unfortunate to have lost their jobs during the months of April and May may be eligible for a 65 percent subsidy on their COBRA health insurance.
Due to the effects of the financial crisis, the American Recovery and Reinvestment Act was established to assist workers who lost their jobs. The COBRA subsidy which was expired on March 31 was reinstated on April 15 through the Continuing Extension Act of 2010.
Through this new signing, workers who where laid off from work between September 2008 and May 31, 2010 may be qualified for a 65 percent subsidy of the COBRA health insurance premiums for a period of 15 months. In certain cases employees who had their hours reduced and later lost employment may be qualified as well.
The American Recovery and Reinvestment Act states that employers must provide COBRA coverage to qualified individuals who pay 35 percent of COBRA health insurance premium. Employers are eligible to claim 65 percent as a tax credit on their tax returns. However, employers must show valid documents on every claim to receive credit.
Some workers who are qualified for the COBRA health insurance subsidy are also eligible for health insurance coverage tax credit (HCTC). The worker have a choice to select one or the other. It is important to note that HCTC pays 80 percent of your health insurance premiums for workers that are eligible.
Find out more on HCTC: Eligibility Requirements and How to Receive the HCTC.
See more COBRA Health Insurane Premium.