As reported in Workforce Management, the following is a summary of what employers need(ed) to know to comply with legislation.
The American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, which was signed into law by President Barack Obama on Tuesday, February 17, provides employees laid off since September 1, 2008, through the end of 2009 with as much as a nine-month subsidy to help them continue receiving their employer's health benefits. These former employees are eligible to pay 35 percent of the cost of the monthly premium as opposed to the standard cost of 102 percent if their gross income is less than $125,000 for individuals or less than $250,000 for couples. The government subsidy will cover the remaining 65 percent of the cost of the premium.
For individuals who make between $125,000 and $145,000 and couples making between $250,000 and $290,000, the subsidies will be provided on a sliding scale. The government will subsidize the upfront cost and then recoup the money through tax returns.
The subsidy must be made available to all qualifying individuals, including those who have already declined COBRA continuity. And employers must allow workers to switch to lower-cost health plans if they are available. Read on…
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