COBRA ARRA Extension Notices

As we notified you last week, the ARRA COBRA subsidy was amended to extend the eligibility period to February 28, 2010 as well as extend the benefit period from 9 months to 15 months.

This amendment was part of the Department of Defense Appropriation Act, 2010 and the Department created “Model Notices” to help you and your COBRA eligible members comply with these new requirements. Each model notice is designed for a particular group of qualified beneficiaries and contains information to help you satisfy ARRA’s notice provisions.

Updated General Notice

This notice should go to all qualified beneficiaries (not just covered employees) who experienced a qualifying event at any time from September 1, 2008 through February 28, 2010, regardless of the type of qualifying event, and who have not yet been provided an election notice. Individuals who experienced a qualifying event (that was a termination of employment) in December 2009 but who were not eligible for COBRA coverage until January 2010 were probably not provided proper notice and should get the updated General Notice and the full 60 days from the date the updated notice is provided to make a COBRA election.

Model Premium Assistance Extension Notice

This notice should be provided to individuals who have already been provided a COBRA election notice that did not include information about the amended ARRA. Listed below are the affected individuals and the associated timing requirements.

1. Individuals who were “assistance eligible individuals” as of October 31, 2009 and those who experienced a termination of employment on or after October 31, 2009 and lost health coverage (unless they were already provided a timely, updated General Notice) must be provided notice of the changes made to the premium reduction; and

2. Individuals who are in a “transition period” must be provided this notice within 60 days of the first day of the transition period. An individual’s “transition period” is the period that begins immediately after the end of the maximum number of months (was 9 months) of premium reduction prior to the amendment. They are in a “transition period” only if the premium reduction provisions would continue to apply due to the extension from 9 to 15 months and they otherwise remain eligible for the premium reduction.

Should you have questions please call or email Ann Ruf at aruf@akersandarney.com.