COBRA: American Recovery and Reinvestment Act of 2009 Provisions

Published March 16, 2009 by The Lubbers Law Group Attorneys at Law

COBRA: Please be advised, part of the recently passed American Recovery and Reinvestment Act of 2009, there are changes to COBRA provisions. The new COBRA provisions provide that any employee who was involuntarily terminated between September 1, 2008 through December 31, 2009 may only be required to pay thirty-five percent (35%) of the continuation benefits. The employer is required to pay sixty-five percent (65%) of the premiums. The employer then gets reimbursed for the subsidy, via a payroll tax credit or through a direct reimbursement from the Treasury Department.

If you have questions regarding the COBRA provisions of the American Recovery and Reinvestment Act of 2009, please contact your insurance provider for more information.