COBRA Subsidy Action Plan and Compliance Update

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act (the "Act"), which includes several important changes to COBRA.

The Act provides for a federal subsidy of 65 percent of the COBRA continuation coverage premiums for qualified beneficiaries receiving COBRA continuation coverage due to the covered employee's involuntary termination of employment between September 1, 2008, and December 31, 2009.

The attached COBRA Subsidy Action Plan and Compliance Update provide detailed information. If you have questions, please contact your Sales Representative or Account Manager.