The American Recovery and Reinvestment Tax Act of 2009 was signed into law on February 17, 2009. This law dramatically affects employers whose group health plans are subject to COBRA, which includes virtually all employers with 20 or more employees. However, the Act also impacts those plans which provide continuation coverage pursuant to Maryland state law to employers with less than 20 employees when that continuation coverage is deemed to be comparable to COBRA. Furthermore, the Act provides a 65% government subsidy to employees who are involuntarily terminated between September 1, 2008 and December 31, 2009.
Saturday, April 18, 2009
COBRA subsidy under American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Tax Act of 2009 was signed into law on February 17, 2009. This law dramatically affects employers whose group health plans are subject to COBRA, which includes virtually all employers with 20 or more employees. However, the Act also impacts those plans which provide continuation coverage pursuant to Maryland state law to employers with less than 20 employees when that continuation coverage is deemed to be comparable to COBRA. Furthermore, the Act provides a 65% government subsidy to employees who are involuntarily terminated between September 1, 2008 and December 31, 2009.
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