BackPublications

Employee Benefits Update - March 2009
New Legislation Implementing COBRA Premium Subsidy Requires Group Health Plan Sponsors to Take Immediate Action

03/06/2009

New Legislation Implementing COBRA Premium Subsidy Requires Group Health Plan Sponsors to Take Immediate Action

On February 17, President Obama signed into law the American Recovery and Reinvestment Act (the "Act") of 2009, which includes significant changes to the Consolidated Omnibus Reconciliation Act of 1985 ("COBRA"). The Act provides for a 65% federal subsidy of COBRA premiums for involuntarily terminated employees (and their families) for up to nine months and is effective for periods of coverage beginning on or after February 17, 2009.

Employers that maintain group health plans that are subject to federal COBRA laws, insurers providing coverage to small insured plans subject to state mini-COBRA statutes, and multi-employer group health plans must act now to comply with the new law. Significant provisions from the Act, as they apply to employers who sponsor group health plans subject to COBRA, are highlighted in the attached newsletter along with a list of suggested action items. 

Download the File