E-Newsletter

January 2010

With Subsidy Extended, Department of Labor Issues Revised Model COBRA Notices

Keith E. Kopplin, Esq.

The U.S. Department of Labor (DOL) recently issued one new, and two revised, model COBRA notices to account for the extended subsidy benefits now made available through the American Recovery and Reinvestment Act of 2009 (ARRA), as amended by the Department of Defense Appropriations Act of 2010. For more information regarding these extended benefits, including the new deadline for becoming an assistance eligible individual, and the maximum period of subsidy eligibility, please see the December 2009 E-Newsletter, COBRA Subsidy Provisions of ARRA Extended.

Although use of the DOL’s model notices is optional, it does provide employers with assurance that they are including all of the information in their notices that is required for compliance with the COBRA subsidy provisions of ARRA, as recently amended. As with the model notices issued by the DOL last spring, the new and revised model notices (posted on www.krukowski.com) are intended to cover three separate scenarios. The Updated Model General Notice is intended for use with qualified beneficiaries who have not yet received an election notice and have experienced a qualifying event during the period of September 1, 2008, through February 28, 2010. The Updated Model Alternative Notice is designed for use where the coverage in question is subject to state continuation coverage requirements; again, for the period of September 1, 2008, through February 28, 2010. Finally, the Model Premium Assistance Extension Notice is to be used for individuals who were receiving premium assistance on October 31, 2009, as well as those who became assistance eligible individuals or experienced a qualifying event that was the termination of employment on, or after October 31, 2009, but who were not provided a notice that included the information required by ARRA, as recently amended.

Employers required to issue Model Premium Assistance Extension Notices must act now to insure distribution before the February 17, 2010 deadline.

For guidance on this and other employment law questions, contact Krukowski & Costello, S.C.'s educational services department at (414) 423-1330.