US Labor Department announces updated model notices

The U.S. Department of Labor has released new model COBRA notices incorporating the extension of eligibility for COBRA premium assistance. The Temporary Extension Act of 2010 extended the date for incurring an involuntary termination of employment that qualifies for the COBRA premium subsidy to March 31, 2010.

The Act expanded eligibility for COBRA premium subsidy assistance to certain individuals who have a reduction in hours on or after Sept. 1, 2008, followed by an involuntary termination of employment between March 2, 2010, and March 31, 2010. The model COBRA notices offer guidance on issues relating to the COBRA subsidy provisions for these individuals, including:

• An updated model general notice.
• A model new election period notice.
• A model extended election period notice.
• A model supplemental information notice.
• An updated model alternative notice.

Certain current and former plan participants and beneficiaries must be notified about the availability of COBRA premium assistance. Plans should update existing COBRA notices to comply with changes to the subsidy requirements made by the law. Individuals who received a COBRA election notice that did not include information about the law’s changes to the COBRA subsidy rules are required to receive information about the changes.

The model notice packages are available for download from EBSA's dedicated COBRA Web page at http://www.dol.gov/cobra. The page also contains an updated fact sheet to help dislocated workers, their families and employers understand the requirements.

Bills have been introduced in both the U.S. House of Representatives and the Senate to further extend the COBRA subsidy provisions.