On March 2, 2010, President Obama signed into law the Temporary Extension Act of 2010.  The Act amends the American Recovery and Reinvestment Act of 2009 by extending through March 31, 2010, a 65% federal subsidy of COBRA continuation coverage premiums.  Without the extension, employees laid off after February 28, 2010 would have been ineligible for the subsidy.  In addition to extending the eligibility period, the Act also extends eligibility criteria.  Now individuals who had a reduction of hours, did not elect COBRA coverage at the time of the reduction, and later suffer involuntary termination may be eligible to receive premium subsidy assistance under certain conditions. 

The Temporary Extension Act only extends COBRA continuation coverage for the thirty-one days of March.  The Act was only intended as a stop-gap.  Congress continues to debate proposed legislation, H.R. 4213, further extending the subsidy period through December 31, 2010.  H.R. 4213 is presently before the Senate.