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PIA National Resource Document: Changes to COBRA

The federal stimulus package that passed earlier this year (2009) made changes to the federal COBRA statute. PIA National alerted members to these changes through...
July 1, 2009

The federal stimulus package that passed earlier this year (2009) made changes to the federal COBRA statute. PIA National alerted members to these changes through PIA Newsline. However, we've received more inquiries as further federal and state health care/benefit reforms move forward and are now distributing the most updated information related to the changes so that everyone will be fully informed. This article, drafted by the PIA National Business Issues Committee, summarizes the COBRA issue for further consideration by PIA member agency owners.

For any business that offers a group health plan to its employees, it is important to understand if the requirements and exceptions of COBRA apply to your agency. In the event that they do, the business needs to be clear on how those requirements and exceptions apply. PIA agencies should also appreciate that COBRA and other related requirements affecting employee-benefit programs change from time to time. Just as you do for your insurance customers, this periodic "insurance compliance review" helps PIA agencies avoid penalties for failing to comply as well as maximizing any tax rebates from the federal government. This article outlines some key points of COBRA, especially the new ARRA mandated changes to the program.

COBRA Update (PDF file, PIA National, June 2009)