Stimulus Changes Affect COBRA Program

The stimulus bill includes changes to the national COBRA program that continues group health insurance benefits to recently unemployed persons, PPB reports.

The American Recovery and Reinvestment Act of 2009 (ARRA) includes a 65 percent subsidy from the government for certain COBRA participants terminated between Sept. 1, 2008 and Dec. 31, 2009. The former employer or plan sponsor must advance the subsidy, and the government reimburses the funds as a credit toward payroll tax submissions. Employers should determine which employees are eligible and should receive notice, and implement compliant policies.

Source:

PPB NewsLink: Stimulus Law Spells Out New Rules For COBRA

Related Content:

Inside Obama’s Stimulus Package

Republicans List ‘Wasteful’ Stimulus Provisions