The Department of Labor has just published Model Notices that can be used to help comply with the new COBRA subsidy requirements. They can be found at: http://www.dol.gov/ebsa/COBRAmodelnotice.html. You’ll notice that there are several notices available to be used depending upon the circumstances. Good luck navigating through them and figuring out what to do.
You’ll remember that the American Recovery and Reinvestment Act, signed on February 17th, has increased employers’ COBRA obligations significantly. Additionally, very small employers not subject to the federal law, but who have comparable state “mini-COBRAs,” are also in for some big changes. The Act of 2009 requires immediate attention by most employers.
The new law provides for a 65% monthly COBRA premium subsidy for most employees who were involuntarily terminated between September 1, 2008 and December 31, 2009, and for their eligible family members. Employers must comply with the new law immediately by providing appropriate notice, collecting subsidized payments from terminated employees (35%), paying the remaining 65%, and seeking a credit for the 65% on their quarterly tax returns.
There are many details to this legislation. So, please contact your attorney, or insurance/COBRA provider for more information. The Department of Labor has also published some FAQs and other resources which can be found at: http://www.dol.gov/ebsa/cobra.html.
