Manatt Answers Employers' Questions About the New COBRA Premium Subsidies Under the Economic Stimulus Package

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President Obama recently signed into law the economic stimulus package (officially known as the American Recovery and Reinvestment Act of 2009), which included a subsidy of COBRA premiums for employees involuntarily terminated between September 1, 2008 and December 31, 2009, as well as their qualified beneficiaries.

Since the stimulus package was signed on February 17, 2009, the Internet has been buzzing with conflicting information about the effect of the new COBRA premium subsidies on employers. We have received a number of questions from clients about employer obligations with regard to the new COBRA subsidies. Manatt answers those questions, and more, below.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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