COBRA Subsidy Extension – DOL Releases Updated Notices

Posted by Sandy Reynolds on Mar 17, 2010 5:05:00 PM

The Department of Labor (DOL) released updated model notices today (March 17, 2010) reflecting changes to the COBRA subsidy program enacted by the recently enacted Temporary Extension Act (TEA).

The most significant change under the TEA is the expansion of the definition of Assistance Eligible Individual to include people who:

  • Experienced a COBRA qualifying event that was a reduction of hours occurring on or after September 1, 2008, AND
  • Subsequently experienced an involuntary termination of employment occurring between March 2, 2010 and March 31, 2010

These individuals must receive a special notice and may have a second opportunity to elect COBRA continuation.

AIM is reviewing the DOL releases and will provide information and administrative guidance as soon as possible through this blog and our regular newsletter and Web site channels.

An AIM Webinar to be conducted Thursday, March 18th from 9:30 to 10:30 a.m. EDT will include a review of the model notices and employer obligations under the TEA - it is not too late to register for first-hand information.

Register for the AIM Webinar
DOL Web Site - COBRA

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