American Recovery and Reinvestment Act of 2009 (ARRA)
Also known as the Stimulus Bill (Pub. L. 111-5). A statute signed into law on February 17, 2009 to provide, among other purposes, a broad-based economic stimulus to the economy to encourage economic recovery. The ARRA contained spending and tax reductions for individuals and businesses estimated to cost $787.2 billion over ten years (2009 to 2019).
In the context of employee benefits and executive compensation, the ARRA:
Established premium assistance rights under the Consolidated Omnibus Budget Reconciliation Act ( www.practicallaw.com/8-501-7063) (COBRA) for employees and their families who were involuntarily terminated between September 1, 2008 and December 31, 2009 (the end-date for this COBRA subsidy was later extended to May 31, 2010).
Included the Health Information Technology for Economic and Clinical Health Act ( www.practicallaw.com/3-501-7466) (HITECH Act), which significantly expanded the privacy and security rules under the Health Insurance Portability and Accountability Act ( www.practicallaw.com/1-501-6222) (HIPAA).
For more information on the ARRA, including the text of the legislation and a summary of its provisions, as well as other government bailout programs implemented in response to the financial crisis, see Practice Note, Government Bailout Programs ( www.practicallaw.com/8-384-3367) . For more information on the HIPAA privacy and security changes under the ARRA, see Practice Notes, HIPAA Privacy Rule ( www.practicallaw.com/4-501-7220) and HIPAA Security Rule ( www.practicallaw.com/5-502-1269) .