How Stimulus effects COBRA

[bradleyelectric]

This is from a HR company I know

The American Recovery and Reinvestment Act of 2009 (ARRA), the financial stimulus law signed by President Barack Obama on Feb. 17, 2009, includes significant changes to the COBRA continuation coverage rules. In general, the ARRA:

*Provides a 65 percent federal government subsidy of COBRA continuation coverage premiums for a maximum of nine months for certain individuals who are COBRA (or state continuation) qualified beneficiaries because of a covered employee's involuntary termination of employment.

*Requires employers to pay the 65 percent portion upfront, and then allows them to deduct those costs from their Social Security and Medicare taxes.

*Retroactively allows workers who became jobless as early as Sept. 1, 2008, and rejected COBRA coverage to reconsider and receive COBRA benefits.


Plan administrators of group health care plans subject to COBRA need to act quickly to:



*Implement administrative procedures necessary to provide the subsidy.


*Provide notices required by the ARRA to COBRA qualified beneficiaries who are eligible for the subsidy.


*Implement the extended COBRA coverage periods.

 

[Cavie]

Sounds real good except nobody knows how to make it work. No forms to fill out yet. You'll be broke before they can make it go.

 

[bradleyelectric]

Knowing the girl that runs the HR business, I'm sure she has her beans in a row as to what needs to be done. Otherwise she wouldn't be passing the information along. It's what she does for a living. If you are effected in either direction and need that information PM me and I can reply with her contact information. If I don't reply within 24 hours reply to this post telling me I have a PM. I might forget to check for a PM

 

[Cavie]

Knowing the girl that runs the HR business, I'm sure she has her beans in a row as to what needs to be done. Otherwise she wouldn't be passing the information along. It's what she does for a living. If you are effected in either direction and need that information PM me and I can reply with her contact information. If I don't reply within 24 hours reply to this post telling me I have a PM. I might forget to check for a PM

This was a a nationwide news art in the paper this morning. The bill was pass with no method of implementation. It will be worked out but it will take months to get the wheel turning.

 

[bradleyelectric]

I don't see the newspaper to often anymore. I don't know her source, but I just copied and pasted from her newsletter. She may have done the same from the source you saw for all I know. I just know it was in my email box 6:20 AM this morning.

http://www.hrsolutionsllc.com/index.htm is her site. For some reason all her newsletters are not displayed. If anyone would like a peek at March 2009 newsletter send email address and I'll forward it.