COBRA Changes Under The 2009 Stimulus Act

February 20, 2009

The American Recovery and Reinvestment Act of 2009 (the "Act") was signed into law by President Barack Obama on February 17, 2009. Group health plans, employers and insurers need to take immediate action to implement the "Premium Assistance for COBRA Benefits" provisions contained in the Act.  This new legislation creates a federal government subsidy paying 65% of the COBRA premium charged to an assistance-eligible individual for up to nine months.  With an immediate effective date for these COBRA subsidy provisions, employers, insurers and their group health plans will need to take immediate action to comply.  This article outlines administrative, payroll and other system changes necessary to comply with these provisions and other key aspects of the COBRA provisions contained under the Act.

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For more information about the COBRA changes under the Act, other recent law changes or questions regarding any aspect of your health and welfare benefit plans, contact your Kapnick Insurance Group sales consultant.

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