labor lawAdivision of labor law center

Good news for HR pros who complain that the COBRA subsidy has placed an unfair burden on employers: the federal government, not employers, will be responsible for enforcing some of the subsidy provisions.

Under the ARRA or American Recovery and Reinvestment Act of 2009, employees involuntarily terminated between September 1, 2008 and December 31, 2009 qualify for a 65% subsidy on extended group health insurance.

However, the COBRA subsidy has income limits. Reduced subsidies apply to individuals with an adjusted gross income (AGI) of $125,000 or more and couples (filing jointly) with AGI  of  $250,000 or more. Individuals with adjusted gross incomes over $145,000 and couples with income over $290,000 for the year they receive COBRA (more…)

Many employers have questions regarding the COBRA subsidy under ARRA, the American Recovery and Reinvestment Act of 2009.

One of the key features under the ARRA is a 65% subsidy to provide COBRA continued healthcare coverage to the unemployed.

Employers need to realize that regulations are still being written for this law that went into effect on February 17, 2009. We will continue to update employers as new regulations are published.

COBRA, of course, is the Consolidated Omnibus Budget Reconciliation Act, a law that permits employees who have lost their jobs to continue their group insurance coverage for up to 18 months. COBRA also applies to dependents of ensured employees, and to employees who lose coverage because their hours have been reduced.

Only employers with 20 or more (more…)

A new state law that permits parents to keep sons and daughters (and other dependents) on their health insurance until age 26 will affect many Illinois employers. The law also permits parents to extend coverage for dependents who are veterans until age 30.

This new law goes into effect on June 1, 2009. Families will have 90 days after their policy is renewed, to add the dependent to an existing policy. Each year thereafter, parents will be able to enroll dependents during the normal open enrollment period.

Illinois Governor Rod Blagojevich used his amendatory veto to interject the changes into a health care bill, House Bill 5285. The original bill allows (more…)