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Release Date: March 19, 2009
Release Number: 09-292-NAT
Contact Name: Gloria Della
Phone Number: 202.693.8664
Washington — The U.S. Department of Labor
today released four model notice packages that will enable group health
plans and employers to provide notice on the availability of premium
reductions and additional election opportunities under the Consolidated
Omnibus Budget Reconciliation Act (COBRA). The American Recovery and
Reinvestment Act (ARRA) signed into law by President Obama on February 17,
2009, made available a premium reduction and the additional election
period as part of the administration’s stimulus package.
“Our action today gives workers and their families
useful information on their right to receive the COBRA subsidy and makes
it easier for employers and plans to meet their notice obligations.
Given the current economic situation facing dislocated workers and their
families, it is very important that individuals do not lose their group
health coverage,” said Alan D. Lebowitz, deputy assistant secretary of
labor for the department’s Employee Benefits Security Administration (EBSA).
The department has developed four notice packages
tailored to fit different types of plans and individuals:
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A general notice to be given to
qualified beneficiaries covered by plans subject to the federal
COBRA at the initial COBRA election opportunity.
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An abbreviated general notice,
which may be furnished to individuals who elected and are still
covered by COBRA.
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An alternative notice to be sent
by issuers of group health insurance coverage subject to state
continuation coverage laws.
-
A notice of extended election
periods for eligible individuals who declined or discontinued COBRA
coverage.
Each package contains a summary of the premium
reduction provisions, questions and answers, and forms to use in
requesting the premium reduction (and COBRA coverage, if not already
enrolled).
Under COBRA, most group health plans must give
employees and their families the opportunity to temporarily continue
their group health coverage when coverage would otherwise be lost for
reasons such as termination of employment, divorce or death.
The four model notice packages are available for
download from EBSA’s dedicated Web page at www.dol.gov/cobra. The Web
page also contains additional frequently asked questions to help
dislocated workers, their families and their employers understand the
requirements. A notice announcing the model notices will appear in the
March 20 edition of the Federal Register.
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format (large print, Braille, audio tape or
disc) from the COAST office upon request. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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