Stimulus Bill COBRA Amendments Require Immediate Action

The American Recovery and Reinvestment Act of 2009 (the “Stimulus Bill”) immediately expanded the group health plan coverage continuation obligations applicable to group health plans covered by the Consolidated Omnibus Budget Reconciliation Act (COBRA) a series of complicated temporary COBRA mandates that became immediately effective when President Obama signed the Stimulus Bill into law on February 17, 2009. The COBRA amendments in the Stimulus Bill are the latest list in a series of new laws and regulations requiring changes in health plan eligibility rules, notices, administrative forms and practices. Employers, group health plan administrators and insurers must act quickly to review and update their COBRA and other health plan eligibility practices in response to these developments.

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