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Yet Another Stopgap: COBRA Extension Presents Administrative Challenges (Expect More)

by Arthur T. Phillips, posted Wednesday, March 24, 2010

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As we have reported, the American Recovery and Reinvestment Act of 2009 (ARRA) provides that certain assistance eligible individuals (AEIs) who lost group health coverage as a result of an involuntary termination of employment through February 28, 2010 (previously extended from December 31, 2009) pay only 35% of their COBRA premiums for up to 15 months (originally 9 months). The remaining 65% is reimbursed to the employer/health insurance provider through an employment tax credit. On March 2, 2010, the ARRA was amended by the Temporary Extension Act of 2010. To qualify under this extension act, individuals must experience a COBRA qualifying event between September 1, 2008 and March 31, 2010. To view the full Special Report, click here.