All employers who terminated employees after September 1, 2008 must send out new COBRA notices. Under the American Recovery and Reinvestment Act of 2009 (“the Act”), employees involuntarily terminated during the period September 1, 2008 – December 31, 2009, are only required to pay 35% of the COBRA continuation premium. The employer must pay the rest of the premium and obtain reimbursement from the government. The Act, which is generally effective March 1, 2009, provides for a COBRA continuation premium subsidy of 65% for eligible individuals for a maximum of nine (9) months. Because the new Act places several administrative burdens on plan sponsors, the Firm will be providing a Client Advisory later this week that summarizes the key provisions of the Act and provides a listing of recommended action steps.