COBRA SUBSIDY EXTENDED - Department of Labor EBSA

COBRA SUBSIDY EXTENDED - Department of Labor EBSA - ARRA Of 2009 Update

12/28/2009

Please be advised that on Saturday, December 19, the U.S. Senate approved the Department of Defense Appropriations Act 2010. President Obama signed this piece of legislation which includes an extension of the ARRA COBRA premium reduction subsidy. In summary the act does the following:

Eligibility for the ARRA COBRA premium subsidy has been extended for an additional two months, from December 31, 2009 to February 28, 2010.
The maximum duration for receiving the premium subsidy has been extended for an additional six months, from 9 months to 15 months.

The following link is the statement of Phyllis C. Borzi, Assistance Secretary of the Employee Benefits Security Administration (EBSA) on COBRA subsidy extension- http://www.dol.gov/ebsa/newsroom/2009/ebsa122109.html.

Employers must provide notices of the new extension rights to individuals who became eligible as AEIs on or after October 31, 2009, or experience a qualifying event consisting of termination of employment relating to COBRA coverage on or after that date. The notice must be provided within 60 days after the extension’s enactment date, December 21, 2009, or, in the case of a qualifying event occurring after the enactment date, consistent with the timing of COBRA notices.

It is not clear at this time whether new model notices will be issued by the DOL or if modification can be made to the existing notices related to the ARRA premium subsidy. Yozell Associates will keep you informed as more information and/or updated model notices become available.

Should you have any questions, please contact your Yozell Associates Account Manager.