American Recovery & Reinvestment Act (COBRA)

The American Recovery and Reinvestment Act of 2009 (ARRA) provides premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA (applicable to employers with 20 or more employees).

The Wisconsin State Legislature recently enacted a law that creates a special election period for certain individuals who became eligible for state continuation coverage between September 1, 2008 and May 19, 2009 (2009 Wisconsin Act 11). This is similar to the special election period created by the American Recovery and Reinvestment Act of 2009 ( ARRA ) for certain individuals eligible for COBRA coverage. The Frequently Asked Questions documents (located in the Resources box) will help you understand how this may affect you and your business. Wisconsin Continuation applies to businesses with less than 20 employees and COBRA refers to businesses with more than 20 employees.

Please note: COBRA and Wisconsin Continuation laws involve employer responsibilities. Providing this information to employer groups and their agents is a courtesy only and is not part of Dean Health Plan’s responsibility under the insurance plan. Employer groups are advised to consult their own legal, tax, or compliance professionals on this issue. For more information, please visit the websites located in the resources box.