Model COBRA Notice and Guidance Issued for Subsidy Extension
January 28, 2010
The Department of Labor has issued several documents relating to Congress’ extension of the COBRA subsidy. Those documents include a summary of COBRA continuation rights, a Fact Sheet about the subsidy as modified by the recent legislation, and a model COBRA Continuation Coverage Election Notice, which includes a discussion of the subsidy extension.
Individuals who were eligible for the subsidy as of October 31, 2009, and individuals who experienced a termination of employment on or after October 31, 2009, and lost health coverage must receive a notice, such as the model notice, that describes the subsidy extension. The notice must be be provided by February 17, 2010. Individuals who were receiving the subsidy and were past the end of the initial nine-month subsidy period in effect prior to the enactment of the extension must receive the notice within 60 days of the end of that nine-month period, but only if the individual qualifies for the extension.
To obtain these documents, go to the Department of Labor’s website at www.dol.gov/ebsa/COBRA.html. The IRS has also updated its guidance on the COBRA subsidy to include discussion of the subsidy extension and how to obtain the corresponding payroll credit. That guidance can be found at www.irs.gov.
Debra J. Linder
Direct Dial: 612-492-7163
dlinder@fredlaw.com
John H. Merkle
Direct Dial: (612) 492-7027
Email: jmerkle@fredlaw.com
James B. Platt
Direct Dial: (612) 492-7047
Email: jplatt@fredlaw.com