New cobra regs

hrmania

Does anyone know the specifics of the changes to Cobra that require a "second chance" to employees that
involuntarily lost their jobs from 9-1-08 to 2-16-09?

Our TPA is saying we have to send to ALL employees that left during those dates - whether voluntary or not.

Any info is appreciated!

joannie

[url]http://www.shrm.org/hrdisciplines/benefits/Articles/Pages/COBRAnotices.aspx[/url]

If I am reading the notice on the above link correctly, you have to send another notice to all covered employees that terminated during the specified period, but the notice explains who is eligible for the extended coverage and who isn't.

If anybody interprets this differently, please let me know.

System

Joannie,

I read it the same as you do.

Sharon

cnghr

Since it specificially says "any assistance eligible individual", that would only include involuntary terminations between 9/1/08 & 2/17/09, since a voluntary termination by definition is not assistance eligible.

Celeste Blackburn SPHR

I asked our in-house COBRA expert and she agreed with what has been posted and had this to add:

All qualifying beneficiaries need to receive the general notice, not just the employees, because the beneficiaries also get a second chance to sign up for cobra as well as the employees.

Employers must send the full version of the new General Notice to employees and their qualified beneficiaries, who had a qualifying event from Sept. 1, 2008 through Dec. 31, 2009, regardless of type of qualifying event, and who either haven't received a COBRA election notice or who received one on or after Feb. 17, 2009 but it didn't contain the information required by the ARRA (American Reinvestment and Recovery Act or stimulus package). The full version contains election information and info about the COBRA premium subsidy. The web page also says employers are allowed to send an abbreviated general notice to those who had a qualifying event on or after Sept. 1, 2008 and who elected and still have COBRA coverage. It may be simpler for employers just to send the full general notice to everyone.

The model notices can be found here: [url]www.dol.gov/ebsa/COBRAmodelnotice.html[/url]

This is the DOL site for COBRA, which address the changes under ARRA: [url]http://www.dol.gov/ebsa/cobra.html[/url]

Celeste