The Department of Labor (DOL) has posted on its website expanded employer guidance on the premium Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidies provided for by the American Recovery and Reinvestment Act of 2009 (ARRA), or stimulus plan. A significant portion of this Q & A guidance, FAQs For Employers About COBRA Premium Reduction Under ARRA, clarifies the new COBRA notice requirements under ARRA. ARRA requires employers and plan sponsors to notify certain current and former plan participants and their beneficiaries about the reduction in health premium costs. Earlier this month, the DOL posted on its website model notices that an employer can provide to current and former employees to comply with the ARRA notice provisions.

The expanded guidance provides a number of examples to help employers determine who should receive the full version of the general, abbreviated general and alternative notices, and who should receive the notice in connection with extended election periods. Other portions of the Q & A address more general topics concerning the COBRA subsidy, such as which plans are subject to the premium reduction provisions, and who is eligible to receive this benefit.