COBRA Benefits Extended
Randy Griffin, Sage Abra HRMS Expert
On December 19, 2009, President Obama signed legislation into law that extends the original federal COBRA subsidy created by the American Recovery and Reinvestment Act of 2009 (ARRA). The law takes effect immediately.
Here are the highlights of the new subsidy extension:
Immediate areas of action for employers include:
- Quickly revising previous documents and preparing new paperwork to meet the requirements of the new subsidy extension legislation.
- Amending current COBRA subsidy paperwork for all eligible participants to reflect:
- the extra six months of coverage;
- the new February cut-off date to qualify for the subsidy; and
- the fact that individuals’ eligibility for the subsidy is conditioned on the date of their involuntary employment termination.
- Developing a notice to provide to current and future COBRA beneficiaries details of the premium subsidy extension created by the new legislation. Including additional notice to certain individuals whose subsidy periods expired and who failed to pay their full unsubsidized premiums. Such notice should inform applicable individuals about the new legislation and that they can make retroactive premium payments in order to maintain their COBRA coverage.
BCS ProSoft is not an expert in benefits law, therefore we highly recommend that you contact your benefits administrator to ensure that you are in compliance. BCS ProSoft can assist you with any changes in payroll administration or withholding as it relates to your HR or Payroll system, so please do not hesitate to contact with questions and/or requests for assistance. We can be reached by telephone: (800) 882-6705 or Click Here to contact us by email.
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