On February 17, President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009. The ARRA includes major health provisions, which are relevant to any COBRA eligible company that has had or may have employee layoffs.
Under the law, employees laid off between Sept. 1, 2008, and Dec. 31, 2009, will be entitled to generous federal subsidies of their COBRA health insurance premiums. This deadline was extended to Feb. 28, 2010 through the Fiscal Year 2010 Defense Appropriations Act.
This Act also extends the maximum coverage period from nine to 15 months. Details about this extension can be found on the U.S. Department of Labor Web site or through your TriSure representative.
Employers face significant communication and administrative challenges to comply with the COBRA provisions that went into effect March 1, 2009. A few of the compliance actions employers should take include:
TriSure has prepared answers to frequently asked questions regarding premium assistance for COBRA benefits under the ARRA.
The Department of Labor has added the following updates to its Web site to explain how the subsidy applies to both employers and workers:
The Internal Revenue Service has added information applicable to employers:
TriSure’s employee benefits professionals have read the law and are available to consult with clients to explain what the rules mean for you. Please call our office at 919.469.2473 for assistance.
The information contained herein is for general reference only. This information is presented, therefore, with the understanding that we are not engaged in rendering legal, accounting or other professional service.