Comparison - House and Senate Stimulus COBRA Provisions
Category: 2009 Stimulus
Topics: cobra, stimulus
As we’ve covered, the House and Senate have passed two differing bills for the American Recovery and Reinvestment Act of 2009 (the Stimulus Bill). Both contain significant changes to COBRA Administration, and while the bill could change radically in the next few days, here are our interpretations of the two bill’s differences.
Last Updated: 02/13/2009
Differences Between House and Senate Bill
| Provisions | House Bill | Senate Bill |
|---|---|---|
| Longtime Employees | 55 and Older or worked for 10 years or more can stay on COBRA | N/A |
| Premium Reduction Assistance for events 9/1/2008 to 12/31/2009 | 65% reduction in premiums for 12 months | 50% reduction in premiums for 12 months Plan cannot be Dental/Vision/Counseling/Referral and cannot be an FSA or HRA |
| Plan Enrollment Option | N/A | For 90 day period following notification, existing QBs can change plans to any coverage offered by employer/organization with following requirements:
|
Similarities in Both Bills
| Provisions | Both Bills |
|---|---|
| Effective Date of Plan | Enactment Date |
| Who pays for Premium Reduction? | Employers take as a credit against payroll taxes |
| New Election Period | QBs eligible for COBRA who have not elected can have 60 additional days after notification |
| Notification Requirement | Must re-notify QBs with new rates within 60 days of enactment. Secretary of Labor will provide new model notices within 30 days |
| Penalty to QB for Failure to Notify | That They are No Longer Eligible for Premium Subsidy 110% penalty of the possible premium reductions |
Update 02-11-2009: Reports are coming in that the conference committee between the House and Senate have reached a deal. “The differences between the House and Senate versions, we’ve resolved,” Senator Harry Reid of Nevada, the Democratic majority leader, said in a Capitol news conference.
Update 02-13-2009: The conference report has been released. View the COBRA implications in the 2009 Stimulus Bill.
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