Employer’s Notice Requirements
[h3Employers and COBRA Administrators Must Send Notices of ExtensionThe ARRA, as amended by the 2010 DOD Act, requires that employers and COBRA administrators send certain notices regarding the COBRA subsidy. As part of the COBRA election notice, plan administrators must provide information about the subsidy to all individuals who have COBRA qualifying events between September 1, 2008 and February 28, 2010. Additionally, plan administrators are required to provide notice regarding the subsidy extension to individuals who have already been provided a COBRA election notice. Notice must be provided as follows:
- An individual who was an assistance eligible individual at any time on or after October 31, 2009, or experienced a qualifying event relating to COBRA continuation coverage on or after October 31, 2009, must be notified by the plan administrator with information regarding the COBRA subsidy extension by February 17, 2010, or in the case of a qualifying event occurring after the enactment of the 2010 DOD Act, within the normal timeframes for providing continuation coverage notices.
- An individual who is in the transition period (i.e. eligible for a retroactive COBRA election or premium reimbursement) must be provided notice of the subsidy extension within 60 days of the first day of the transition period.
- Although not yet released for general use, the Department of Labor has developed for public comment three model notices addressing the subsidy extension. The three model notices are (1) an updated general notice; (2) an updated alternative notice; and (3) a new premium assistance extension notice.
The new premium assistance extension model notice explains the subsidy extension (1) for individuals who were already receiving the subsidy as of October 31, 2009; (2) for individuals who became assistance eligible individuals, or who experienced a qualifying event that was the termination of a covered employee’s employment, on or after October 31, 2009, but who were provided a notice that did not include information about the subsidy extension; and (3) for individuals who are in the transition period.
Further Pending Legislation
You should also be aware the there is further legislation pending in Congress for yet another subsidy extension to June 30, 2010. We will keep you apprised of any further developments.
