Alerts

New Stimulus Package Creates Subsidy for Health Care Continuation Coverage

March 9, 2009

On Feb. 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (the “ARRA”). The ARRA seeks to stimulate the economy by authorizing approximately $787 billion in tax cuts and spending for a variety of programs, including health, education and job creation. Of immediate significance to employers, health plans and insurers are provisions that expand the rights of terminated employees under the Consolidated Omnibus Budget and Reconciliation Act of 1985, as amended (“COBRA”). This Alert summarizes the ARRA’s changes to COBRA, describes employers’ obligations under this new legislation and provides guidance on various notice requirements.