Concern in the Air for Small Business Owners
Some of our small groups have expressed concern about the COBRA-related bill that was recently passed by President Obama, the American Recovery and Reinvestment Act of 2009. If a business is apprehensive about buying group health insurance because they’re concerned about the new bill, we can assure them it won’t actually cost them anything. 

Why Business Owners Don’t Need to Worry
When employees involuntarily are terminated, they are eligible for COBRA. Formerly, the ex-employee paid 100% of the premium. Under the new bill, employers will be required to pay 65% of the premium for the first 9 months. The government will reimburse the employer each month for the 65%, so it’s actually not going to cost the employer anything. The 65% will be based on the premium for the whole family unit, not just the employee’s portion. The bill affects employees who were involuntarily terminated between 9/1/08 and 3/1/09.  If they haven’t already applied for COBRA, it’s not too late. The reimbursement is not backdated to 9/1/08; it just means those folks can qualify.