From the Desk of...

Alice Eastman Helle, BrownWinick

By Alice Eastman Helle, BrownWinick

The Department of Labor has now posted revised COBRA Subsidy notices to its website: www.dol.gov/cobra. An updated Fact Sheet titled COBRA Premium Reduction is also on the website. The new model notices include: 

General Notice. Plans subject to the Federal COBRA provisions must provide the updated General Notice to all qualified beneficiaries who experienced a qualifying event anytime from September 1, 2008 through February 28, 2010 and have not already been provided an election notice. This model notice includes updated information on the premium subsidy as well as information generally required in a COBRA election notice.

Premium Assistance Extension Notice. This model notice generally applies to two groups of people, as follows:

• Individuals who were “assistance eligible individuals as of October 31, 2009 (unless they fall into a transition period – see below) and individuals who experienced a termination of employment on or after October 31, 2009 and lost health coverage (unless they have already received an updated General Notice). These individuals must be provided the Extension Notice by February 17, 2010.
• Individuals who are in a “transition period” must be provide the Extension Notice within 60 days of the first day of the transition period. An individual’s transition period is the period that begins immediately after the end of the maximum number of months (generally nine) of premium reduction available under ARRA prior to its amendment. An individual is in a transition period only if the premium reduction provisions would continue to apply due to the extension from nine to 15 moths and they otherwise remain eligible for the premium reduction.

Note that some individuals will fall into both of the above groups. In that case, the Extension Notice by the earliest required date.

Alternative Notice. Insurance issuers that provide group health insurance coverage must send the updated Alternative Notice (modified as necessary) to persons who become eligible for continuation coverage under state law. Issuers may also use the updated General Notice and the Premium Assistance Extension Notice where appropriate.