ARRA 2009                                                                                                                                                                       

COBRA and The American Recovery and Reinvestment Act of 2009

On February 17, 2009, President Obama signed into law the economic stimulus bill.

The stimulus bill signed by the President imposes important new COBRA compliance obligations, effective March 1. The new law, known as the American Recovery & Reinvestment Tax Act of 2009, creates detailed new rights to COBRA premium assistance for employees (and their families) who are involuntarily terminated from September 1, 2008 through December 31, 2009. It also adds an option to change enrollment into a different plan.

ARRA COBRA Communication Timeline

• March 19, 2009- Notification e-mails sent to all COBRA customers that the data is ready for their review.
• March 25, 2009 – customers must complete the on-line  identification process.
• March 27 – April 18 - HR Simplified will send oout the following notices:

1. Notice to all Qualfying events that resulted in a termiantion of employment to all who are currently not covered by COBRA.
2. Notice to all Qualfying events that resulted in a termiantion of employment to all who are currently covered by COBRA.

These notices are adopted using the DOL Model notice requirements.

To view our newly revised notices, please click here.

Questions: Send your ARRA questions to arra@hrsimplified.com.