On January 13, 2010, the U.S. Department of Labor (“DOL”) issued new model COBRA notices that incorporate the changes from the Department of Defense Appropriations Act, 2010, which was signed into law by President Obama on December 19, 2009. The Act effectively extended COBRA benefits from nine to 15 months. The new notices can be found at http://www.dol.gov/ebsa/COBRAmodelnotice.html.
The new “Premium Assistance Extension Notice” should be sent to the following individuals: (1) Those who were “Assistance Eligible Individuals” and receiving the COBRA subsidy as of October 31, 2009; (2) those who were involuntarily terminated after October 31, 2009 and lost health benefits coverage, but have not been provided with the updated General Notice; and (3) those in a “transition period,” i.e., those whose COBRA subsidy ended because they had exhausted the original number of months (generally nine months), but are entitled to continue the subsidy to 15 months.
Employers should visit the the DOL and incorporate the new notice to the extent necessary and required by the law.
December 23rd, 2009
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On December 21, 2009, President Obama signed legislation extending the COBRA premium subsidy established under the American Recovery and Reinvestment Act of 2009 (“ARRA”). Originally under ARRA, individuals who were involuntarily terminated and who lost group health insurance coverage before December 31, 2009 were eligible to receive the subsidy for nine months of coverage.
The new legislation extends federal COBRA health coverage cost subsidies for 6 additional months for a total of 15 months of subsidized coverage. The extension applies to those COBRA beneficiaries whose nine-month premium subsidy under the ARRA had expired. The legislation also extends the qualifying event deadline to February 28, 2010. The legislation amends the ARRA provisions that required terminated employees to have been eligible for COBRA coverage by December 31, 2009. Now, the terminated employee only must have been terminated by December 31, 2009, even if COBRA eligibility isn’t effective until some time in 2010.
The legislation also gives beneficiaries whose subsidy expired and who didn’t continue to pay the full unsubsidized premium the opportunity to receive retroactive subsidized coverage.
September 1st, 2009
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A federal COBRA subsidy law designed to make health insurance more affordable for laid-off workers has led to a doubling in the number of people who have opted to continue their former employer’s coverage. Read the article on the increase in COBRA claims here: http://www.usatoday.com/money/industries/health/2009-08-17-unemployed-insurance-cobra_N.htm
The American Recovery and Reinvestment Act of 2009 (“ARRA”), enacted on February 17, 2009, which provides premium assistance for certain assistance-eligible individuals that were involuntarily terminated between September 1, 2008 and December 31, 2009, now has procedures for applicants to use to appeal a denial of their eligibility for the premium subsidy. Read more…
