Learn more about Employee Benefits and Executive Compensation at Schiff Hardin. Attorneys In This Practice Suzanne M. Arpin Margaret C. Barker Lauralyn G. Bengel Bradford P. Campbell Katherine J. Levy Christopher J. Rillo Edward Spacapan Jr. Margaret A. Strothkamp B. Frank Thorn David H. Williams Schiff Hardin Offices One Atlantic Center, Suite 2300 1201 West Peachtree Atlanta, GA 30309 225 Franklin Street, Suite 2600  Boston, MA 02110  233 S Wacker Drive Suite 6600 Chicago, IL 60606 One Westminster Place Suite 200 Lake Forest, IL 60045 900 Third Avenue New York, NY 10022 One Market, Spear Street Tower 32nd Floor San Francisco, CA 94105 1666 K Street, NW Suite 300 Washington, DC 20006 - - - - - - - - - Join our mailing list. Forward this alert to a friend or colleague. - - - - - - - - -

Schiff Hardin Employee Benefits and Executive Compensation Group Update

COBRA Subsidy Extended

Last February President Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA) which, among other things, offers a premium subsidy to certain COBRA-eligible individuals. On December 19, 2009, ARRA was amended to extend eligibility for the subsidy to individuals who are eligible for COBRA continuation coverage related to an involuntary termination occurring between September 1, 2008 and February 28, 2010. Prior to the extension, eligibility for the subsidy was set to expire on December 31, 2009.

The new law also extends the length of the subsidy period from 9 months to 15 months. This extension applies retroactively. Accordingly, individuals who lost their COBRA continuation coverage because they did not pay the full COBRA premium when their eligibility for the subsidy expired will be able to re-enroll in COBRA (without any gaps in coverage) for an additional six months.

Additionally, the new law requires employers to notify individuals who were eligible for the subsidy on or after October 31, 2009 about the COBRA subsidy extensions no later than February 17, 2010. Going forward, employers are required to provide notice of the COBRA subsidy extensions within the applicable statutory timeframe for providing other COBRA notices.

For more information on ARRA and its impact on COBRA, please see our previous updates, "New Federal Government Program: COBRA Subsidies" and "COBRA Subsidy Update — New COBRA Forms."

Please contact your Schiff Hardin LLP attorney or any of the individual attorneys listed in this update if we can be of assistance to you as you begin to implement these new COBRA requirements.

ABOUT SCHIFF HARDIN LLP

Schiff Hardin's Employee Benefits and Executive Compensation Group works with clients to determine which retirement and health/welfare benefits plans best suit their needs, and assists in the design and implementation of all types of stock-based plans, deferred compensation and employment arrangements. Our counseling extends to analyzing benefit formulas, investment alternatives and procedures, and issues of securities law and fiduciary concerns.

For more information, please feel free to contact us.