DOL Publishes Model Cobra Notices to Explain Stimulus Premium Subsidy

As promised, the Department of Labor has published model notices for employers to use to notify eligible employees about their rights under COBRA and the premium subsidy provided as part of the American Recovery and Reinvestment Act of 2009 (also known as the stimulus package).  The model notices can be found here.

With last month’s passage of the ARRA, a 65 percent premium reduction is available for employees who are otherwise eligible for continuing coverage under COBRA because of the involuntary termination of their employment between September 1, 2008 and December 31, 2009.  The reduced premium applies to coverage beginning on or after February 17, 2009, and continues for up to nine months.

In addition, the Act created a special COBRA election period for qualified employees who were involuntarily terminated between September 1, 2008 and February 16, 2009 but chose not to elect continued coverage are no longer enrolled in continued coverage.  The model notice for the extended election period can be found here. Plan administrators must provide these COBRA notices to eligible individuals on or before April 18, 2009.

 

This article was written by Erin E Magee, Jackson Kelly PLLC. For more information on the author see here.