Have Employers Updated their COBRA Notices?

Section 3001 of the American Recovery and Reinvestment Act of 2009 that was enacted by Congress in February 2009 provides that for certain eligible employees who were involuntarily terminated between September 1, 2008, and December 31, 2009, an employer must cover 65% of COBRA continuation coverage premiums, which employers may then take as a tax credit. This is a substantial change from the regular provisions of COBRA, which allowed employers to require qualified employees to pay 100% of the premiums. The law requires employer’s to notify employees of this change in the law if they lost their jobs prior to the law’s effective date.