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COBRA Subsidy Sunset and Model COBRA Notices Posted by DOL

Alert
7.15.10

The Federal COBRA subsidy available to employees who are involuntarily terminated has not been extended beyond May 31, 2010 (the statutory sunset date). Eligible employees who were involuntarily terminated prior to June 1, 2010 may continue to receive the COBRA subsidy for up to 15 months, as long as they are not eligible for another group health plan or Medicare. Summaries of the COBRA subsidy as set forth in the American Recovery and Reinvestment Act of 2009 can be found here. A summary of the COBRA subsidy made by the Department of Defense Appropriations Act for Fiscal Year 2010 can be found here. A summary of the changes to the COBRA subsidy made by the Temporary Extension Act of 2010 can be found here.

The Employee Benefits Security Administration (EBSA) recently posted updated model COBRA notices for use with employees (and their covered dependents) who terminate employment on or after June 1, 2010. The updated notices may be found here:

What This Means To You
Eligible employees who terminate on or after June 1, 2010, should receive COBRA notices based on the updated DOL model COBRA notices unless the statutory sunset date is extended by Congress.

Contact Info

If you have any questions about this or any other employee benefits and executive compensation matter, please contact your Husch Blackwell Sanders attorney.

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