Prepared by Alfred B. Fowler, Attorney at Law, for Barney & Barney LLC.
The Law
Employers / Plan Sponsors who are subject to state or federal COBRA must provide premium subsidies of no less than 65% of regular COBRA premium to “Assistance Eligible Individuals” beginning March 1, 2009. Employers must provide notice of the subsidy’s availability to all eligible individuals within 60 days of the law’s enactment.
Background
On Friday, February 13, 2009 both houses of Congress approved the economic stimulus package now known as The American Recovery and Reinvestment Act of 2009 (ARRA). ARRA calls for special assistance to most but not all individuals electing COBRA who lose their jobs for any reason (other than gross misconduct) between September 1, 2008 and January 1, 2010.
Discussion
1. Assistance Eligible Individuals. Assistance Eligible Individuals (Eligible Individuals) are any Qualified Beneficiaries who become eligible for COBRA coverage on or after September 1, 2008 and before January 1, 2010 through involuntary termination of employment which results in the loss of coverage. This includes spouses and dependents of employees covered under the health plan at the time of the Qualifying Event who would also lose coverage as of the Qualifying Event. If the covered employee dies, coverage will remain in place for the remaining Qualified Beneficiaries. It’s important to note that the Qualifying Event relates only to loss of coverage as a result of loss of employment... Read Complete Article Here
