Under the COBRA amendments made in the American Recovery and Reinvestment Act of 2009 (ARRA), employers (or group health insurers) are required to notify certain current and former participants and beneficiaries about the new COBRA premium reduction subsidy. Those required to comply with COBRA's group health insurance continuation rules (or similar State laws) must send the following DOL model notices (or similar notices) to the individuals specified for each type of notice by April 18, 2009. After April 18, 2009, some of these notices must also be sent to certain other individuals.
What are the New DOL COBRA Model Notices?
In general, the notices describe the ARRA requirement that employers (or insurers) reduce by 65% the COBRA premiums otherwise charged to certain involuntarily terminated employees (and their covered dependents), beginning as early as March 1, 2009. Each model notice is designed for a particular group of individuals, contains information and forms to satisfy the notice rules of ARRA and COBRA, and allows eligible individuals to apply for the 65% premium reduction (and COBRA, if necessary). Plans may change these notices to work with their existing notices and procedures.
You may download the model notices from the DOL's website, or call one of our lawyers for copies.
Our detailed report of the COBRA amendments made by ARRA is also available.
Notices Due by April 18, 2009:
1. Notice in Connection with Extended Election Periods
- download
This model notice (or a similar notice) must be sent by April 18, 2009, to all employees and other qualified beneficiaries (as defined by COBRA) who:
(a) had a "qualifying event" (as defined by COBRA), regardless of the type of event, during the period that began September 1, 2008, and ended February 16, 2009; and
(b) either did not elect COBRA continuation coverage, or did elect coverage but later discontinued it before the maximum coverage period expired.
This model notice includes (a) information and forms for the new "second chance" 60-day period to elect COBRA coverage, if the individual's qualifying event was the involuntary termination of a covered employee; and (b) information on the 65% premium reduction.
2. General Notice (abbreviated version) - download
The abbreviated version of the DOL model "General Notice" (or a similar notice) must be sent by April 18, 2009, to all former employees and other qualified beneficiaries who:
(a) had a qualifying event, regardless of the type of event, on or after September 1, 2008;
(b) have already elected COBRA coverage; and
(c) still have COBRA coverage.
The model abbreviated notice includes information about the 65% premium reduction and other rights under ARRA, but does not include information about electing COBRA.
3. General Notice (full version) - download
The full version of the DOL model "General Notice" (or a similar notice) must be sent by April 18, 2009, to all former employees and other qualified beneficiaries who:
(a) had a qualifying event, regardless of the type of event, during the period that began September 1, 2008;
(b) have not elected COBRA; and either
(i) have not been sent a COBRA election notice, or
(ii) were sent an election notice on or after February 17, 2009, that did not include the information required by ARRA, concerning the 65% premium reduction.
This full version includes information on the 65% premium reduction, plus all information required in a COBRA election notice.
4. Alternative Notice – State COBRA only - download
Insurers must send the DOL model "Alternative Notice" (or a similar notice), by April 18, 2009, to individuals who:
(a) are not eligible for Federal COBRA; and
(b) became eligible for continuation coverage under Minnesota law (or a similar State law), regardless of the type of event, during the period on or after September 1, 2008.
Continuation coverage rules vary among States, and insurers should modify this model notice as necessary to work with applicable State laws. Insurers may also find the abbreviated version of the model General Notice useful for certain situations.
Notices Due after April 18, 2009:
1. Federal COBRA
Employers (or insurers) that are required to comply with the Federal COBRA rules must send the following notices (whichever applies) to all former employees and other qualifying beneficiaries who have a qualifying event (regardless of the type of event) on or after April 18, 2009, and on or before December 31, 2009:
(a) if the individual has not elected COBRA coverage, send the full version of the DOL model General Notice (or a similar notice); or
(b) if the individual has elected COBRA coverage, send the abbreviated version of the DOL General Notice (or a similar notice).
2. State COBRA
Insurers that are required to comply with State COBRA laws must send the DOL model "Alternative Notice" (or a similar notice) to persons who become eligible for continuation coverage under Minnesota law (or a similar State law), but are not eligible for Federal COBRA, during the period that began on April 18, 2009, and ends December 31, 2009.
Please contact us with any questions or concerns you may have regarding this important issue.
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