CLIENT UPDATE - Extended COBRA Eligibility Notices Required For Employers to Capture Special 65% Subsidy

The American Recovery and Reinvestment Act of 2009 enacted in February created a subsidy for COBRA premiums for individuals who were involuntarily terminated from employment between September 1, 2008 and December 31, 2009. The subsidy equals 65% of an individual's COBRA premiums, and is paid by the employer (but is reimbursed by the federal government, as noted below). The remaining 35% continues to be paid by the terminated individual. The subsidy applies only to COBRA premiums paid on or after February 17, 2009, and is available for up to nine months. Please click the pdf link above to read the full article.