Employment Law Updates | New Statutes, Regulations, and Rules
April 8, 2009
Department of Labor Issues Guidance on Reduced Premium Payments for COBRA under Pres. Obama’s Stimulus Program
COBRA Subsidy under the American Recovery and Reinvestment Act of 2009
Release Number: 09-0301-NAT, 3/19/2009
The stimulus package, which was enacted as the “American Recovery and Reinvestment Act of 2009” (“ARRA”) temporarily reduces the premium for COBRA coverage for eligible individuals. COBRA (the “Consolidated Omnibus Budget Reconciliation Act of 1985”) allows certain people to extend employer-provided group health coverage, if they would otherwise lose the coverage due to certain events such as divorce or loss of a job.
Individuals who are eligible for COBRA coverage because of their own or a family member’s involuntarily termination from employment that occurred from September 1, 2008 through December 31, 2009 and who elect COBRA, may be eligible to pay…
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