Revised Model COBRA Notices Address Optional Coverage Under Health Care Exchanges

The Department of Labor has issued revised model COBRA notices that explain the alternative coverage that may be available to COBRA-eligible individuals under the government-sponsored health insurance exchanges established pursuant to the Affordable Care Act (ACA), otherwise known as health care reform.

The model general COBRA notice (provided when a covered individual first enrolls in the plan) has been revised to include two new paragraphs indicating that a COBRA-eligible individual may be able to elect coverage under a government-sponsored health insurance exchange in lieu of electing COBRA continuation coverage and that the cost of such coverage may be cheaper than COBRA continuation coverage.