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The COBRA subsidy is one of the most notable features of the ARRA or American Recovery and Reinvestment Act signed into law on February 17, 2009. 

The employee will pay just 35% of the usual COBRA premium. Under this plan, employees who lose healthcare coverage due to terminate will qualify for a 65% government subsidy on continued group insurance coverage under COBRA.

A new U.S. Department of Labor COBRA subsidy fact sheet outlines this program.

Under this program, the employer still pays the entire healthcare premium to the insurance company. The employer can then deduct 65% of the total premium from his or her payroll taxes.

Suppose a former employee of the XYZ Corp. normally pays $900 for COBRA coverage. Under the ARRA COBRA subsidy, the employee pays 35% of that amount, (more…)

Fall is the season of crisp breezes, crunchy leaves underfoot – and for most employers, open enrollment for the next benefit year. As every HR manager knows, open enrollment is the one period each year when current employees can opt to add health insurance coverage.

Tips to prepare for 2009 open enrollment:

• Provide clear, attractive, portable written information on each insurance plan and benefit option offered. (more…)

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