Important Notice for Employers

The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months for those eligible for COBRA during the period beginning September 1, 2008 and ending December 31, 2009 due to an involuntary termination of employment that occurred during that period. The TAA Health Coverage Improvement Act of 2009, enacted as part of ARRA, also made changes with regard to COBRA continuation coverage.

These provisions may apply to your business if any individual under your plan had a COBRA qualifying event on or after September 1, 2008. There are also additional COBRA election opportunities for certain individuals who were involuntarily terminated from September 1, 2008 to February 16, 2009, even though they may have declined COBRA at the time. These individuals must be notified by April 18, 2009 of a second election period.

For more information regarding; your obligations under the COBRA provisions and notice requirements under ARRA, contact the US Department of Labor’s Employee Benefits Security Administration at 1-866-444-3272 or visit www.dol.gov/COBRA  and under Highlights, click on COBRA Premium Reduction Information.

Looking Out For Your Business

Develops and recommends to Board SS/PC's annual public policy statement; monitors legislative activities, and alerts Members to proposed policy/regulations which could impact their operations.