New COBRA Rules in Effect

The recent economic stimulus package signed into law includes
significant changes to COBRA administration — and provides a short deadline for employers, insurers and third-party administrators to comply.  The changes are numerous and complicated. 

The rules are currently in effect and you must begin notifying your workers and former workers right away. Notices to former workers who terminated before February 17 must be sent by April 17.

If you employ more than 20 workers and you laid someone off starting September 1, 2008, complying with COBRA is now a whole lot more complicated. Even if you employ fewer than 20 workers and maintain group health plan coverage subject to continuation coverage rules, your compliance burdens have increased.

You can find additional information on the U.S. Department of Labor web site under  “COBRA Continuation Coverage Assistance Under The American Recovery And Reinvestment Act Of 2009.”




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