Reductions in COBRA Premiums American Recovery & Reinvestment Act of 2009 (ARRA)

ARRA American Recovery & Reinvestment Act of 2009 (ARRA) provides reductions in COBRA premiums for qualified individuals & additional election opportunities for qualified individuals –65% reduction in COBRA premium costs – eligible individuals pay 35% of their premium –Effective for premium payments from 2/17/09 through 12/31/09

Eligibility Who is eligible –Employees who were involuntarily terminated from employment and were eligible for COBRA continuation at anytime between 09/01/2008 and 12/31/2009 –Meet income limits, income less than $145,000 Who is not eligible –Left employment voluntarily (e.g. resigned, quit) –Who become eligible for Medicare or other group health plan –COBRA benefits expired prior to September 1, 2008 Eligible applicants will receive written notification regarding these changes from the plan administrator

Special COBRA Election Opportunity Eligible individuals who did not elect COBRA when first offered or are no longer enrolled because they were unable to pay the premiums will be granted a new election period. The election period starts on 02/17/2009 and will extend 60 days after the plan provides required notice

What can providers do? Identify individuals who have been involuntarily terminated from their jobs during the specified time frame Look for COBRA statements that change the premium payment amount or ask participants to provide any change notices received. Make sure that when the nine month period of premium reduction is complete, the client returns to the full payment amount. Additional Information: