Effective March 1, Title III of the American Recovery and Reinvestment Act of 2009 (the Stimulus Package), expanded the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) Continuation Coverage to make medical insurance coverage more accessible for those who have been laid off. The new provisions apply to those laid off as far back as Sept. 1, 2008. However, employers have yet to learn from the Obama administration how to make the plan work. Employers are waiting for instructions from the Labor Department and the Internal Revenue Service on how to put the program into place. Under the new provisions, individuals who pay 35% of their regular COBRA premiums are treated as having paid the entire premium amount. This applies only to the group health plan, not an FSA that is normally covered under COBRA. The employer is then required to pay the additional 65% of the premium and seek reimbursement from the government in the form of a credit on the payroll taxes owed by the employer. Clarification: Arkansas Academic Challenge Scholarship In the Thursday, Feb. 26 Alert, we stated academic requirements for students who are eligible for the Academic Challenge Scholarship, as it pertained to legislation concerning funding from the Arkansas state lottery. Currently, two years of a foreign language are required for this scholarship. In the preliminary draft of the lottery bill, however, only the smart core curriculum is required. Legislators chose to drop the foreign language requirement in the proposed legislation. | |
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