DEPARTMENT OF LABOR ISSUES UPDATED MODEL COBRA NOTICES
The Department of Labor released 3 model notice packages to help group health plans and employers provide notice on the availability of the extension of COBRA continuation coverage under the American Recovery and Reinvestment Act. The American Recovery and Reinvestment Act was amended by the Department of Defense Appropriations Act of 2010 and extended the eligibility period for 2 months and the duration from 9 to 15 months. Eligible individuals pay only 35% of their COBRA premiums, and the remaining 65 percent is reimbursed to the employer through a tax credit. According to Phyllis C. Borzi, assistant secretary of the Labor Department's Employee Benefits Security Administration, "Our action today gives workers and their families useful information to keep important health benefit coverage during these challenging economic times. We also are making it easy for employers and plans to meet their obligations to provide the notices". The Department of Labor will be holding a free webcast on January 22, from 1 to 3 p.m (EST) to help employers, plan administrators and service providers comply with the notice requirements. You can register on line at www.dol.gov/cobra or call Sandra Lynch at 202-693-8671.
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