DOL Issues Updated Information on COBRA Subsidy Requirements

The U.S. Department of Labor has issued updated information for employers on complying with the new COBRA subsidy provisions that were contained in the Economic Stimulus Plan.  You can review this information at the DOL web page on this subject. 

There are model notices which must be sent to former covered employees (and their qualified beneficiaries) who were involuntarily terminated after September 1, 2008, whether or not they previously elected COBRA coverage.   Individuals who were not eligible for COBRA, but were eligible for continuation of health care coverage under state or local law are also entitled to this subsidy and must also be sent an appropriate notice.

A notice must also be given to all covered employees (and their qualified beneficiaries) who are involuntarily separated from February 17, 2009 through December 31, 2009.  For a detailed discussion of this subsidy see our posting of  March 5, 2009.  The DOL webpage also provides links to Frequently Asked Questions about this subsidy from the DOL and the IRS, as well as from the House Ways & Means Committee.

On March 24, 2009 at 11:30 (EDT), the DOL will be presenting a webcast about compliance with these new rules.  You may register online for this free webcast.