|
|
The American
Recovery and Reinvestment Act (aka "The Stimulus Package") was signed into
law on February 17, 2009 by President Obama. One of the provisions within
the act provides federal subsidies to COBRA premiums for employees
involuntarily terminated between September 1, 2008 and December 31, 2009.
Details include:
- The government will provide a 65% subsidy of COBRA premiums
- The individual will be responsible for the remaining 35%
- The subsidy provides for up to 9 months of coverage, but would end as soon as an individual is eligible for other group coverage or their eligibility for COBRA ends
- Employers are required to notify eligible employees of these changes no later than April 18, 2009.
- Plenty of fine print applies, but we'd recommend that you direct any specific questions to your group insurance carrier.
And in other news, the
California state legislature has begun work on a new ballot measure that
would tax the COBRA subsidies of all unemployed Californians.
(That's a joke … we think …)
To ask a question, request
additional information, or unsubscribe, simply reply to this message. And
if you know of anyone who may be interested in "Taxing Details," don’t
hesitate to pass it along.