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COBRA Worries Cash-Poor Businesses: Firms Must Pay Now, Wait for Reimbursement
Workforce Management 
[Guidance Overview] Apr. 14, 2009
Excerpt: [Employers] must pay 65 percent of the COBRA premium and then file for reimbursement through a payroll tax credit. Employees pay the other 35 percent. Some companies are worried the federal requirement could cause cash flow problems because of the up-to-three-month delay for reimbursement, said Sue Mathiesen, director of research at McGraw Wentworth, a Troy, Michigan-based employee benefits and consulting company.
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