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