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Human Resources IQ

Ensuring Compliance for the New COBRA Revisions

Posted: 03/16/2009

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Tags:   COBRA | health insurance coverage | Diane Pfadenhauer | American Recovery and Reinvestment Act of 2009

The objective of the COBRA revisions under the American Recovery and Reinvestment Act of 2009 is to provide the opportunity for eligible individuals to pay reduced premiums and gives additional election opportunities for health insurance coverage under COBRA. The essence of what is being referred to as the COBRA subsidy is that eligible individuals will pay only 35 percent of the COBRA premium, and the remaining 65 percent is reimbursed to the health insurance coverage provider (typically the employer or the health insurance plan) through a tax credit.

Though there are many more details to be ironed out by federal agencies, employers should begin the compliancy process now. This webcast outlines the key provisions of the law and provides useful suggestions on how to prepare to be compliant under the new law.

US Department of Labor - COBRA under the ARRA

US Department of Labor COBRA Premium Subsidy Fact Sheet

Revised Form 941

IRS Form 941 Guidance Containing COBRA Subsidy Instructions Under ARRA

IRS Website Information on COBRA Premium Subsidy Under ARRA

Editor’s Note: As of March 19, 2009 the US Department of Labor issued revised COBRA notices, which are intended to help organizations comply with the new COBRA provisions of the American Recovery and Reinvestment Act. For more information visit www.strategichrlawyer.com.




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