Is there a state health continuation subsidy? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Is there a state health continuation subsidy?

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in Employee Benefits Program,HR Management,Human Resources

Q. Is North Carolina providing a subsidy for health care continuation for employers with fewer than 20 employees similar to the federal subsidy contained in the new economic stimulus law?

No, but a subsidy is available. North Carolina has not passed a law similar to the federal American Recovery and Reinvestment Act (ARRA) of 2009.

However, the ARRA—which amends COBRA law to provide a subsidy for COBRA premiums through the end of 2009—also applies to state laws affecting continuation coverage.

Although the regulations providing guidance on this new federal law are not final, it is likely there will be a subsidy available for employees who continue group health insurance under a policy subject to the North Carolina continuation law.

For the latest information on the HR implications of the ARRA, visit

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