DOL Issues Model COBRA Notices

           The United States Department of Labor ("DOL") has just posted model COBRA notices on its website at http://www.dol.gov/ebsa/COBRAmodelnotice.html, which can be used to meet the new notice requirements under the amended COBRA law.  As we previously reported, these amendments, which were part of the American Recovery & Reinvestment Act ("ARRA"), provide a 65% subsidy on a temporary basis to employees for their COBRA premiums. 

DOL's model notices are designed for a particular group of qualified beneficiaries and contain necessary information to satisfy the ARRA's requirements.  The model notices cover the following three different situations:

1.    COBRA General Notice (Full Version): includes information required in a regular COBRA election notice as well as information about the premium reduction.  This can be used by group health plans for qualified beneficiaries who have not yet received an election notice and with qualifying events occurring for the period September 1, 2008 through December 31, 2009.

2.    COBRA General Notice (Abrieviated): includes the same information as the full version regarding the availability of the premium reduction and other rights under the ARRA, but does not include the COBRA coverage election information.  This can be used by group health plans for qualified beneficiaries who currently are enrolled in COBRA and who had a qualifying event that occurred on or after September 1, 2008.

3.    Notice of Extended COBRA Election Period:  This can be provided to any individual who had a qualifying event at any time from September 1, 2008 through February 16, 2009 and either did not elect COBRA continuation coverage or elected it but thereafter discontinued it.   The notice must be provided by April 18, 2009.

If you have any questions about these notices or the COBRA amendments generally, or need assistance in bringing your business into compliance with the new law, please contact Amy B. Royal at (413) 586-2288 or at aroyal@rkesq.com.