The Economic Stimulus Package and COBRA provides up-to-the-minute information about how an employer can comply with the new requirements of the Act. Elizabeth H. Latchana J.D. of Fraser Trebilcock Davis & Dunlap, P.C., offers this advice for employers.
"The American Recovery and Reinvestment Tax Act of 2009 (the "Act") was signed into law on February 17, 2009. This new law dramatically affects employers whose group health plans are subject to COBRA, which includes virtually all employers with 20 or more employees.
"As an employer who is potentially impacted by this legislation, prompt attention must be paid to the substantial requirements under the Act and its affect on COBRA. Specifically, the Act provides a 65% government subsidy to employees who are involuntarily terminated between September 1, 2008 and December 31, 2009.
"The employer must first provide this payment and then be reimbursed by the government. Immediate action is required as the subsidy portion of the Act becomes pertinent for periods of coverage beginning on or after the enactment of the Act (i.e., March 1, 2009) and imposes numerous COBRA notice and other obligations on plan administrators and employers."
Find out more about the Economic Stimulus Package and COBRA.
Image Copyright Fraser Trebilcock Davis & Dunlap, P.C
The Economic Stimulus Package and COBRA
All Topics | Most Popular | Newsletter | HR Forum
Could you put a link to a more detailed analysis of Cobra insurance. Thanks!
Hi Rita,
Here are the basics with a link to more information.
http://humanresources.about.com/od/glossaryc/g/cobra.htm
Thanks for asking.
What does the gov’t considered to be gross misconduct?
When does the goverment START paying the 65%premiums? I have been asked by Ceridian COBRA to continue paying my regular premium UNTIL at which time I will be refunded? what does that mean refunded? I figured that portion/refund would be applied to future payments of my 35% I am totally confused I thought the employer (which in my case is BCBS pays the 65% portion and gets reimbusred by goverment. Please verify.. Victoria
The Act presents a great way for new employers to save dollars if they hire laid off employees. See the post at the link below. http://web.mac.com/resnickhr/iWeb/Site/HR%20Blog/310F3BB1-8A22-41E7-81BF-23E8212209E1.html
Is it true that if your employer goes out of business that you lose your policy altogether and have no COBRA option? If this is true it would seem that the legislation fails to help a lot of desperate people. Thanks,
Any chance of this benefit being extended any longer then 9 months?
I don’t know the answer but very interested. We had ins thru previous co that downsized ins $565 per mo now up to $1200 now I’ve been working for a co for 6 mo and been allowed to be part of their program but they don’t pay anything if I loose this job I go back to cobra but at what rate if you get info lmk