DOL Issues Model COBRA Notices for Employers
The Department of Labor has issued model COBRA notices to help employers quickly explain to former employees and their families how to take advantage of the premium subsidy as set forth in the American Recovery and Reinvestment Act of 2009 (ARRA). The notices were created to help plans and employers comply with ARRA mandates requiring plans to notify certain current and former participants and beneficiaries about the reduction in premium costs. According to Hilda L. Solis, Secretary of Labor, the “ARRA provides a 65 percent tax subsidy for the cost of health benefits, making them more affordable for the unemployed and their families.”
The notices consist of a General Notice (full version) ( http://www.dol.gov/ebsa/COBRAgeneralnoticefullversion.doc EXE: http://www.dol.gov/ebsa/COBRAgeneralnoticefullversion.doc ), General Notice (abbreviated version) ( http://www.dol.gov/ebsa/COBRAgeneralnoticeabbreviatedversion.doc EXE: http://www.dol.gov/ebsa/COBRAgeneralnoticeabbreviatedversion.doc ), Alternative Notice ( http://www.dol.gov/ebsa/COBRAalternativenotice.doc EXE: http://www.dol.gov/ebsa/COBRAalternativenotice.doc ), and Notice in Connection with Extended Election Periods ( http://www.dol.gov/ebsa/COBRAextendedelectionperiodnotice.doc EXE: http://www.dol.gov/ebsa/COBRAextendedelectionperiodnotice.doc ). The full version of the General Notice must be sent to all qualified beneficiaries who experienced any type of qualifying event from September 1, 2008 through December 31, 2009. The abbreviated version of the General Notice may only be used instead of the full version for individuals who: (1) experienced a qualifying event during, on, or after September 1, 2008; (2) have already elected COBRA coverage; and (3) still have COBRA coverage.
The Alternative Notice must be provided, by April 18, 2009, by insurance issuers that provide group health insurance coverage, to persons eligible for continuation coverage under state law. This model notice should be modified by issuers as necessary to conform to the relevant state law. The Notice in Connection with Extended Election Periods must be sent by plans subject to federal COBRA provisions to any assistance eligible individual who both had a qualifying event at any time from September 1, 2008 through February 16, 2009 and elected COBRA continuation coverage or elected it but subsequently discontinued it.
Source: www.dol.gov
Reprinted with permission. © CCH
(Submitted March 21, 2009)
<p>DOL Issues Model COBRA Notices for Employers The Department of Labor has issued model COBRA notices to help employers quickly explain to former employees and their families how to take advantage of the premium subsidy as set forth in the</p>