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Department of Labor Issues Updated Model Notices Following Second COBRA Subsidy Extension

March, 18 2010

The Department of Labor has again modified the model notices for use in notifying group health plan participants of their COBRA rights and their right to subsidized COBRA coverage, which was extended by the Temporary Extension Act of 2010. For more information about this second extension of the COBRA subsidy, please see our previous article.

General Notice

Employers must provide the updated General Notice to any individual who becomes eligible for COBRA through March 31, 2010. The updated model General Notice form is available by clicking here.

Notice of New Election Period

Employers must provide, within 60 days of the date of the termination of employment, a Notice of New Election Period to any employee or covered dependent who lost health coverage due to a reduction in hours occurring on or after September 1, 2008, and who is terminated between March 2, 2010 and March 31, 2010 and either did not elect continuation coverage when it was first offered or elected but subsequently discontinued the coverage. The model Notice of New Election Period form is available by clicking here.

Supplemental Information Notice

In addition to providing the Notice of New Election Period, employers must provide, within 60 days of the date of the termination of employment, the Supplemental Information Notice to any employee or covered dependent who elected and maintained continuation coverage due to a reduction in hours occurring on or after September 1, 2008, and who is terminated between March 2, 2010 and March 31, 2010.

Employers also must provide the Supplemental Information Notice to any other employees or covered dependents who elected and maintained coverage following an involuntarily termination on or after March 1, 2010, but who did not receive a COBRA subsidy notice, before the end of the required time period (usually 45 days) for providing a COBRA election notice.

The model Supplemental Information Notice form is available by clicking here.

Notice of Extended Election Period

Employers must provide, before the end of the required time period for providing a COBRA election notice (usually 45 days following termination or loss of coverage due to termination), the Notice of Extended Election Period to employees who were involuntarily terminated on or after March 1, 2010 and who received a COBRA election notice which did not explain their rights to a COBRA subsidy as amended by the Temporary Extension Act of 2010, and who either chose not to elect COBRA continuation coverage at that time or elected COBRA but subsequently discontinued that coverage. The Notice of Extended Election Period for is available by clicking here.

If you have any questions about your organization’s obligations under COBRA or the COBRA subsidy laws, please contact your employment counsel or contact us.

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