Model Notices Released for COBRA Subsidy Under American Recovery and Reinvestment Act
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Tuesday, March 24, 2009 |
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The
U.S. Department of Labor released four model notice packages that will
enable group health plans and employers to provide notice on the
availability of premium reductions and additional election
opportunities under the Consolidated Omnibus Budget Reconciliation Act
(COBRA). The American Recovery and Reinvestment Act (ARRA) signed into
law by President Obama on Feb.17, 2009, made available a premium
reduction and the additional election period as part of the
administration's stimulus package.
"Our action today gives
workers and their families useful information on their right to receive
the COBRA subsidy and makes it easier for employers and plans to meet
their notice obligations. Given the current economic situation facing
dislocated workers and their families, it is very important that
individuals do not lose their group health coverage," said Alan D.
Lebowitz, deputy assistant secretary of labor for the department's
Employee Benefits Security Administration (EBSA).
The department has developed four notice packages tailored to fit different types of plans and individuals:
* A general notice to be given to qualified beneficiaries covered by
plans subject to the federal COBRA at the initial COBRA election
opportunity.
* An abbreviated general notice, which may be furnished to individuals who elected and are still covered by COBRA.
* An alternative notice to be sent by issuers of group health insurance
coverage subject to state continuation coverage laws.
* A notice of extended election periods for eligible individuals who declined or discontinued COBRA coverage.
Each
package contains a summary of the premium reduction provisions,
questions and answers, and forms to use in requesting the premium
reduction (and COBRA coverage, if not already enrolled).
Under
COBRA, most group health plans must give employees and their families
the opportunity to temporarily continue their group health coverage
when coverage would otherwise be lost for reasons such as termination
of employment, divorce or death.
The four model notice packages
are available for download from EBSA's dedicated Web page at
www.dol.gov/cobra. The Web page also contains additional frequently
asked questions to help dislocated workers, their families and their
employers understand the requirements. A notice announcing the model
notices will appear in the March 20 edition of the Federal Register.
Link: http://www.dol.gov/cobra
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