Last month we reported that President Obama signed the American Recovery and Reinvestment Act of 2009 (“ARRA”).  ARRA includes important time-sensitive changes to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) which relate back to employees terminated as of September 1, 2008 and which require prompt employer action.

ARRA created a new election period for involuntarily unemployed persons (and their qualified beneficiaries) that have become COBRA eligible during the relevant period (September 1, 2008 to December 31, 2009) and that have not elected to purchase COBRA coverage. Under this new election period, and starting on February 17, 2009, the involuntarily unemployed person has sixty (60) days from receipt of a renewed individual notice of the extended election period to apply for a continuation of coverage from their former employer’s plan administrator (“COBRA Notice”).  The COBRA Notice must include information on the availability of the premium assistance, among other information.

Last week the U.S. Department of Labor issued model COBRA Notices for employers and health plan providers to use in implementing the new COBRA health care continuation provisions set forth under ARRA.  Employers and health plan providers are urged to consider using these model notices, or a version of the model notice adapted to their unique situation, immediately to satisfy the new notice requirements.

The model COBRA Notices are posted at: http://www.dol.gov/ebsa/COBRAmodelnotice.html.

 

Jackson & Campbell, P.C.'s Employment Law Practice Group can assist you interpret the ARRA and provide more guidance on what immediate steps to take with regard to the changes to COBRA in order to minimize your risk of litigation, as well as provide counsel on other related employment matters.