COBRA Premium Subsidy

February 18, 2009

The American Recovery and Reinvestment Act of 2009

On February 17, 2009, President Obama signed H.R. 1, the American Recovery and Reinvestment Act of 2009 into law. Title III of ARRA expands COBRA continuation to provide a 65% federal subsidy toward an eligible worker's COBRA premium for up to 9 months.

This NEEBCo Legislative Brief (Click here PDF) covers questions surrounding this COBRA expansion and what steps you should start to undertake for compliance.

The Department of Labor has 30 days after the enactment of ARRA to issue COBRA model notices. Within 60 days after the enactment of the Act, group health plan administrators must provide notices to all assistance eligible individuals who currently have COBRA continuation coverage to advise them of both the availability of the subsidy and what the requirements are to qualify for the subsidy, and they must also provide notices to individuals who are entitled to the special enrollment period.

Call your NEEBCo representative at (603) 228-1133 if you have any questions. NEEBCo client's MyWave Portals have been updated with this notice in addition to questions surrounding this law. Model notices will also be available in MyWave once released by the Department of Labor.

Don't have access to MyWave? Call us at (603) 228-1133 to learn how you can.

<<- Return to News