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The American Recovery and Reinvestment Act of 2009 carries a lot of changes for employers, not the least are changes to COBRA coverage. Under the new law, eligible employees who were enrolled in their employers’ health plans when they lost their jobs will be able to receive COBRA coverage, but are required to pay only 35 percent of the premium. Employers can redeem the remaining 65 percent in the form of a tax credit on their quarterly payroll tax return.

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