We get model COBRA notices from the DOL

The EBSA has met its obligation under the American Recovery and Reinvestment Act (ARRA) of providing model notices on COBRA premium assistance by March 19th.

The model notices are available on the EBSA website. The notices include a Full General Notice, an Abbreviated General Notice, and a Notice of Extended Election Period. There is also a notice with respect to COBRA benefits under State law (i.e., where States have acted to create COBRA duties for employers with fewer than 20 employees--Hawaii does not have such a law).

Please note the following in regard to the model notices:

1) Full General Notice. The EBSA has taken the position that a notice must be provided to every qualified beneficiary who experienced a COBRA qualifying event, regardless of the type of qualifying event (e.g., including voluntary terminations), on and after September 1, 2008 (but not after December 31, 2009).

2) Abbreviated Notice (for QBs who have an election in place). An abbreviated notice may be given to COBRA qualified beneficiaries who experienced a qualifying event after September 1, 2008 and who continue to have a COBRA election in place.

3) Notice of Extended Election Period (for QBs whose event occurred before Feb. 17th and who didn’t have an election in place on Feb. 17th). ARRA requires plans to provide an extended election period of 90 days for any person who experienced a qualifying event on or after September 1, 2008 and before February 17, 2009, and who did not have a COBRA election in effect on February 17, 2009. The 90 day period begins to run when the plan administrator gives notice of the availability of the extended election period to such individuals. The EBSA has provided a model notice of the extended election period. ARRA requires that the notice of the extended election period be given within 60 days after February 17, 2009 or no later than 4/18/2009. (Although 4/18/2009 is a Saturday, it is not clear that plan administrators may wait until Monday, April 20, 2009, to provide the Notice of Extended Election Period.)

Please review the notices, here: http://www.dol.gov/ebsa/COBRAmodelnotice.html.

John D'amato, Friday, March 20, 2009