Senate Bill Lacks Cobra Extension, Suggests End for Subsidy

A new tax bill unveiled by Senate Democratic leaders lacks an extension of federal Cobra premium subsidies for laid-off employees, which ran out June 1, according to a report in Business Insurance.

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A companion measure already passed by the House also omitted the Cobra extension, suggesting that the generous 65 percent subsidy, which has been extended before, has ended for good this time.

About 500,000 workers who lost their jobs each month were eligible for the Cobra subsidy and up to one-third took advantage of it, according to the Obama administration.

Read the Business Insurance report on Cobra insurance.

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