Employers
Group Coverage Continuation Requirements
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (ARRA), commonly called the Stimulus Plan. ARRA places obligations on employers and we are pleased to provide you with information and resources that you need to comply with these new laws.
ARRA can apply to group health plans of all sizes since the law applies to both federal COBRA coverage and to State continuation coverage if required by comparable state “mini-COBRA” laws. For purposes of ARRA, “Continuation Coverage” refers to both COBRA and State continuation of group health insurance.
ARRA provides a subsidized premium for certain qualified individuals. Individuals who lose health insurance coverage due to an Involuntary termination between September 1, 2008 and February 28, 2010, may be eligible to pay only 35% of the premium costs for Continuation Coverage for up to 15 months.
Employers are required to provide notice about the premium subsidy to all individuals who have a Continuation Coverage qualifying event from September 1, 2008, through February 28, 2010.
Anyone who qualifies for State continuation of coverage between September 1, 2008, and February 28, 2010, should be given the applicable state notice along with the ARRA Summary and Forms.
Illinois Continuation Notice
Wisconsin Continuation Notice (Form LG163-WIS)
ARRA Summary and Forms
To obtain continuation notices for other states, call 800-322-0160, Extension 2814
Anyone who qualifies for COBRA continuation of coverage between September 1, 2008 and February 28, 2010, should be given all of these notices and forms:
COBRA Notice (Form LG172)
COBRA Election Form (Form LG178)
ARRA Summary and Forms
The United States Department of Labor (DOL) has also published Model Notices for employers. You may use the DOL forms if you prefer.
NOTE: These new laws do not affect the use of the Employer Notices for other types of continuation coverge. Please continue to use:
Dependent Child Request for Continuation (Form LG271)
Spouse Dependent Request for Continuation (Form LG272)
If you have questions regarding a specific situation related to the ARRA requirements, please feel free to contact us. We are at your service.
Additional ARRA Resources
US DOL Frequently Asked Questions
IRS updated Form 941 - used to claim the premium subsidy.
Your payroll or tax advisor may have additional information.
Centers for Medicaid and Medicare Services
State Continuation Resources
Centers for Medicaid and Medicare Services
Illinois Department of Insurance
Iowa Department of Insurance
Iowa Insurance Division
The Stimulus Bill
Ohio Department of Insurance
Wisconsin Department of Insurance
Indiana does not mandate state continuation.