DOL Issues Model COBRA Notices to Reflect Changes Mandated by the Stimulus Package


Yesterday, the Department of Labor (“DOL”) issued model notices in connection with the recent changes to health insurance continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). Under the stimulus law, the American Recovery and Reinvestment Act of 2009, employees who lost their jobs since September 1, 2008 may be eligible for a government subsidy of 65% of the premium cost for COBRA continuation coverage. Employers that sponsor their own group health care plans are required to send updated COBRA notices about these changes. The new model notices from the DOL will satisfy these requirements, and the DOL has created four different models to be used depending on the circumstances.

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