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ARTICLE · 27 FEBRUARY 2009

COBRA Continuation Coverage: New Requirements For Employers

Holland & Knight
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The American Recovery and Reinvestment Act of 2009 imposes new requirements on employers providing COBRA continuation coverage. Employers must act quickly to comply with the new requirements, which became effective February 17, 2009.

United StatesEmployment and HR
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Ms Lumb works in our Washington D.C. office

The American Recovery and Reinvestment Act of 2009 imposes new requirements on employers providing COBRA continuation coverage. Employers must act quickly to comply with the new requirements, which became effective February 17, 2009. Most notably, employers will be required to provide a 65 percent subsidy on premiums for COBRA continuation coverage to eligible COBRA continuation coverage recipients for up to nine months. In connection with the subsidy, new rules regarding notice to eligible individuals and COBRA coverage elections apply for COBRA continuation coverage, effective February 17, 2009.

The Subsidy

What is the subsidy?

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