COBRA Premium Reductions Poster
Notify employee health plan participants of their right to a reduction in COBRA premiums after job loss as mandated by the economic stimulus bill signed into law on February 17th, 2009, and since extended*.
The American Recovery and Reinvestment Act (ARRA), signed into law by President Obama on February 17th, 2009, provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Under the new mandate, eligible individuals have to pay only 35% of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit.ï¿½
*The premium reduction program has now been extended through the end of May 2010, so anyone involuntarily terminated since the beginning of the program in September 2008 can continued subsidized coverage through the end of May. Congress is working on a further reduction through the end of the year.
Affected employers can notify their existing plan participants of the premium reduction via our 11” x 17” COBRA Premium Reductions Notification Poster. This exclusive poster summarizes eligibility requirements, explains the provisions of the premium reduction, and describes related provisions. Posting this information in a conspicuous place will help existing employees better understand their new COBRA rights and obligations if they are involuntarily terminated before the end of 2009.
Our 11” x 17” COBRA Premium Reductions Notification Poster includes the following important information:
- Premium reduction provisions of the American Recovery and Reinvestment Act of 2009
- Eligibility requirements
- Employer notice requirements
- Special election opportunities for terminated workers
- Income limits for repayment of premium reduction
- A summary of general COBRA requirements