On February 17, 2009, President Obama signed the American Economic Recovery and Reinvestment Plan into law. Included in the variety of programs designed to promote overall economic recovery are significant changes to the group health plan coverage continuation provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). Generally, the new law provides government-funded assistance equal to 65% of the applicable COBRA premium for Assistance Eligible Individuals. The subsidy is available for any group health plan coverage (including dental, vision, etc.) other than flexible spending account coverage offered through a cafeteria plan. More information about the new COBRA rules can be found
The new law directed the Department of Labor to issue model notices within 30 days of the date of the enactment of the law. These model notices were issued March 17, 2009. Employers have until April 18, 2009 to get the required notices prepared and sent.
Houston Harbaugh can provide a set of customized notices for you for a small fee ($300). If you are interested in learning more, call Gary Gunnett.