USDOL Publishes New Model COBRA Notices

As we reported in a recent Alert the American Recovery and Reinvestment Act of 2009 ("ARRA") made qualified certain beneficiaries eligible to receive a subsidy that will cover 65% of the cost of COBRA continuation coverage for themselves and their eligible dependents for a finite period. Recently, the United States Department of Labor ("USDOL") made available four new model COBRA notices that advise eligible beneficiaries – including certain former employees – of their right to subsidized continuation coverage.

Employers and administrators alike should give their prompt attention to these model "Second Election Notices," and to planning for compliance under ARRA, because eligible employees are entitled to receive notice of their right to the new COBRA subsidy by April 18, 2009.