American Recovery and Reinvestment Act of 2009

What does it mean to HR Outsourcing Professionals?

February 16, 2009 – The House  of Representatives passed the American Recovery and Reinvestment Act and President Obama signed the bill this week in an effort to help stimulate the economy. There were provisions within the bill that also benefit Human Resources departments. The two main provisions in the bill are COBRA continuation coverage and Unemployment Compensation.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) will allow eligible workers to receive a 65% subsidy toward their health care coverage premium for up to 9 months. Plus individuals who were involuntarily terminated between Sept 01, 2008 and Dec 31, 2009 and earn and income less than $125,000 for singles and $250,000 for couples would qualify for the COBRA premium assistance for them and their family. If the party chooses to originally decline the use of the COBRA service would be given 2 months after they receive notice of the special election period to choose to participate in the program.

Under the Unemployment Compensation provision there will be both an extension of benefits as well as an expansion of benefits. In regard to the extension of benefits qualified workers would be able to collect unemployment benefits until May 31, 2010. Under the old provision benefits would only be collected until Dec 31, 2009. This will help ease the minds of people who have lost their jobs and have been unable to obtain work.

Not only will there be an extension of benefits, there will be an expansion of benefits albeit it a small one. An increase of $25 per week would be made available to all individuals receiving regular, extended or emergency unemployment benefits. There would also be an extra $15 per week for each of the qualified recipients’ dependents.

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