ARRA COBRA Extension WAS STRIPPED from the bill to save cost at the last minute!

Technorati Tags: ,,,,

By Mark Stember, JD Kilpatrick Stockton

From the KS Health and Welfare Team:

This afternoon the tax extender legislation passed the House, and the Senate is expected to vote on it the week of June 7th.  However, in an effort to limit its costs, a number of changes were made at the last minute. 

First, the COBRA subsidy extension was stripped from the bill.  The House may try to do a separate extension when it returns after the Memorial Day recess.  However, right now, the COBRA subsidy will expire on May 31, 2010 and will not cover new involuntary terminations after May 31, 2010.

Second, the Medicare physician payment rates were substantially reduced.  The proposed provisions explained below were replaced with an increase in payment rates of 2.2 percent for the rest of 2010 and 1 percent in 2011. Instead of rates returning to present law after 2013, rates would return to present law after 2011.

Have a great weekend.