EBSA Releases Updated Model COBRA Subsidy Notices

The DOL’s Employee Benefits Security Administration (EBSA) has created model notices that employers can use to notify current and former health plan participants and beneficiaries of the COBRA premium reduction provided by the American Recovery and Reinvestment Act (ARRA), and extended by the 2010 Department of Defense Appropriations Act (2010 DOD Act).  In general, the 2010 DOD Act extends the COBRA premium reduction eligibility period for two months until February 28, 2010, and increases the maximum period for receiving the subsidy for an additional six months (from nine to 15 months).  The EBSA’s Fact Sheet explains who is now eligible for the premium reduction, the new period of coverage, and notice requirements plan administrators must provide in light of the extension.  The agency has also issued a set of frequently asked questions (FAQs) on the new COBRA premium reduction extension provisions that explain the revised notice obligations.  For more information, visit Littler's D.C. Employment Law Update blog. 


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Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.