labor lawAdivision of labor law center

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…)