DOL Releases Model Notices for New COBRA Premium Subsidy

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On April 7, 2021, the U.S. Department of Labor (DOL) released model notices that can be used by group health plan sponsors to notify laid off employees and other “assistance eligible individuals” about the COBRA premium subsidy under the American Rescue Plan Act (ARPA). Our previous Information Memo explained the new COBRA premium subsidy and the actions that health plan sponsors must take to comply with the requirements relating to the subsidy.

The model notices can be used to: 

  • Notify an “assistance eligible individual” (the term is explained in the above referenced Information Memo) who is currently receiving COBRA coverage about the availability of the ARPA premium subsidy;
  • Notify an individual who previously declined COBRA coverage, or elected COBRA coverage but then discontinued it, about their right to make a “second chance” COBRA election; 
  • Notify an individual about state law continuation coverage options; and 
  • Notify an “assistance eligible individual” about the expiration of the ARPA premium subsidy. 

The model COBRA notices can be accessed here

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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