Benesyst COBRA Client Alert – End of ARRA Subsidy

Background

September 2, 2011 – The American Recovery and Reinvestment Act (ARRA), passed in 2009, provided new COBRA subsidy rules that had a significant impact on COBRA administration. The Continuing Extension Act of 2010 was passed in April 2010 and extended the COBRA subsidy for employees who involuntarily terminated through May 31, 2010 to be eligible for the ARRA COBRA subsidy.The last group of eligible recipients will cease to be subsidy eligible after August 31, 2011 (there are some unique severance circumstances that could have participants in the subsidy longer).

Impact to Benesyst Clients  

Benesyst will manage the end of subsidy communications directly with each COBRA participant. Once an employer no longer has COBRA participants receiving a subsidy, they will no longer receive an ARRA billing or report from Benesyst. There is currently no legislative activity that we are aware of to extend the subsidy further.