Major COBRA changes in store for employers beginning March 1
Employers with 20 or more full-time (or full-time equivalent) employees face a slew of new regulations regarding COBRA, thanks to new provisions in the economic stimulus legislation signed by President Obama on February 17.
Some of these changes are huge, including subsidy payments the government will force employers to pay. Other provisions could require major time and capital expenditures on the part of employers. But more important is that some of the changes are happening NOW, meaning employers had better get moving in order to comply. Health insurance agents with commercial clients would do well to get this information to those clients.
HRS/TND Associates, a Pennsylvania-based human resources consulting firm, did a good job in summarizing the requirements. Click here to see their fact sheet, which includes some important tax information.
3 Responses
- Tom Dondore, SPHR Says:
February 19th, 2009 at 1:40 pmThank you for highlighting our COBRA fact sheet and website. HRS is a small, personal and professional HR company and COBRA Administrator and we have been following the development of this regulation for weeks. Our system is already prepared to initiate the first necessary notification steps and communications to current and potential COBRA qualifiers for our many clients. We are also “going on the road” to conduct seminars on the new regs for employer and industry groups.
We will gladly answer any IFA reader questions and assist them in meeting the new requirements. Tom, President of HRS - Vakuutus Says:
February 28th, 2009 at 1:40 amI feel your blog is really useful and inspires me. Thank you.
- Mark Fluharty Says:
March 3rd, 2009 at 10:58 pmI understand under the new ARRA COBRA rules the employer has up to 60 days after the QE to notify the employee of their COBRA rights and then the X-employee has up to 90 days after notification to accept COBRA.
Previous COBRA rules then gave the employee an additional 60 days to actually make payment. Has the new ARRA rules changed the time frame that an employee has to actually pay for their share of the COBRA premium?


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