November, 2009
Health Care Reform and COBRA.
Below is an excerpt from H.B.3962, which if passed, would allow COBRA continuants to extend their COBRA coverage until they enroll in other group health coverage, or become eligible for the Health Insurance Exchange, which would begin in 2013.
In the case of any individual who is, under a COBRA continuation coverage provision, covered under COBRA continuation coverage on or after the date of the enactment of this Act, the required period of any such coverage which has not subsequently terminated under the terms of such provision for any reason other than the expiration of a period of a specified number of months shall, not withstanding such provision and subject to sub section (b), extend to the earlier of the date on which such individual becomes eligible for acceptable coverage or the date on which such individual be comes eligible for health insurance coverage through the Health Insurance Exchange (or a State-based Health Insurance Exchange operating in a State or group of States).
Download the entire section HERE
COBRA Subsidy Q&A Click Here
March, 2009
Department of Labor Guidance
The DOL clarified that the Second Chance Notice for those individuals that may be eligible for the Act’s COBRA subsidy due
to an involuntary termination on or after September 1, 2008 and before the Act’s effective date must be given to all individuals
who have had a qualifying event in that time period—not just those who have been involuntarily terminated.
They have also indicated that they are currently working on a process and a form to allow those individuals who have been
notified by their group health plan that they are not eligible for the Act’s COBRA subsidy—for example, because they were
not involuntarily terminated or they are not eligible for COBRA—to appeal that determination to the DOL.
The DOL has also
stated that their review process is limited to those plans offering COBRA pursuant to ERISA. Individuals in other types of plans
covered by the Act—government plans or plans subject to state continuation laws—will appeal to HHS.
February, 2009
American Economic Recovery and Reinvestment Act of 2009
The President signed the American Recovery and Reinvestment Act of 2009 on February 17, 2009. The new law provdes a 65% subsidy of COBRA premiums for up to nine months to Assistance Eligible Individuals.
Listed below are several documents designed to help clients understand the new law.
Short Summary (PDF) 4 pages
Long Summary (PDF) 9 pages
Notice Chart (PDF)
This chart explains the new notice requirements.
Employer Checklist (PDF)
This document reviews the steps an employer should take to comply with the new law.
Text of the law affecting COBRA (Word) 2 pages
HR.1 Text (Word) 6 pages
New COBRA Notices
Within 30 days of the enactment of the law, the Department of Labor will issue Model Notices. At that time, CobraAid will post the amended qualifying event notices to the members area of the website (LOGIN HERE).
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