New COBRA Rules Effective March 1 - Immediate Action Required

New COBRA Rules Effective March 1 - Immediate Action Required

Mar 10, 2009

Article

Brownstein Tax Update, March 10, 2009

The American Recovery and Reinvestment Act of 2009 (“ARRA”) includes a temporary subsidy for COBRA health care continuation coverage for individuals who have been involuntarily terminated from employment on or after September 1, 2008, through December 31, 2009. Under this COBRA subsidy, eligible individuals pay only 35% of their COBRA premium for up to nine months. The remaining 65% of the COBRA premium for the same period must be advanced by the employer (or the plan in the case of a multiemployer plan or the insurer in the case of very small fully-insured plans not subject to federal COBRA).

Click to read more about this important new legislation that went into effect on March 1 and requires immediate action for employers who provide medical benefits to employees.

Meet The Team

Andrew S. Brignone Shareholder T 702.464.7006 abrignone@bhfs.com
Nancy A. Strelau Shareholder T 303.223.1151 nstrelau@bhfs.com