The American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009 allows for a temporary reduction in COBRA premiums for eligible individuals. In order to qualify for the premium reduction, the individual must have been involuntarily terminated from employment during the period of September 1, 2008 and May 31, 2010.

The State of Colorado has responded to the subsidy extension for those groups with less than 20 employees. At this time, the extension does apply for those with State Continuation.

Information from the Department of Labor.

Revised model Notifications should be used.

Employers will complete the modified IRS form 941 to be reimbursed for subsidy dollars

For detailed information, please visit www.dol.gov/COBRA