Client Alert from the Labor and Employment Group - March 2009ARTICLE UPDATE - COBRA SUBSIDYThe United States Department of Labor issued the model notices on March 19, 2009 pursuant to the American Recovery and Reinvestment Act (ARRA). There are several different notices. Each notice is designed for a particular group of qualified individuals and includes information consistent with the requirements of the ARRA. The first notice is a general notice. The general notice must be sent to all qualified beneficiaries, not just covered employees who may experience the qualifying event at any time from September 1, 2008 through December 31, 2009. The notice needs to be sent regardless of the type of qualifying event which caused the individual to become eligible for COBRA. There is also an abbreviated version of the general notice which is valuable. The abbreviated notice may be sent instead of the full version to individuals who experience the qualifying event on or after September 1, 2008, but who have already elected COBRA coverage and still have it. The third available notice is an alternative notice. Insurance companies that provide group health insurance coverage must send the alternative notice to individuals who became eligible for continuing coverage under state law. The Ohio Department of Insurance issued an information sheet indicating that it has taken the position that the federal subsidy is available to individuals covered by Ohio's mini-COBRA law. The fourth notice is a notice regarding the additional election opportunity. This notice must be sent to individuals who (1) had a qualifying event at any time from September 1, 2008 through February 16, 2009; and (2) either did not elect COBRA continuation coverage or elected it but subsequently discontinued COBRA. This notice includes information on the additional election opportunity, as well as premium reduction information. This notice must be provided by April 18, 2009. If you have questions regarding the COBRA provisions of the American Recovery and Reinvestment Act of 2009, please feel free to contact one of the Labor and Employment Group attorneys at Walter & Haverfield, LLP. WALTER & HAVERFIELD LLP The information in this Client Advisory is a summary of often complex legal issues and may not cover all of the "fine points" of a specific situation or court jurisdiction. Accordingly, it is not intended to be legal advice, which should always be obtained in consultation with an attorney. |
