ARRA COBRA Subsidy
NEW! The ARRA COBRA Subsidy extension expired on May 31, 2010. As of June 25, 2010, Congress has failed to come to an agreement on extending the COBRA Subsidy. It is our understanding that it is unlikely that it will be brought up again. Keenan recommends that clients forego use of the COBRA forms relating to the subsidy and return to use of standard COBRA forms.
We will continue to provide updates as they become available.
2010 DOD Act Resources:
- DOL Fact Sheet
- Keenan Briefing
- DOL Webpage: COBRA Continuation Coverage Assistance Under ARRA
- DOL Compliance Assistance Webcast on Extension Provisions 1/22/2010
Do you have questions about how to administer the new federal COBRA subsidy?
Keenan has Answers.
On February 17, 2009, President Obama signed into law sweeping changes to COBRA, effective almost immediately. Employers were left with little time and little guidance to comply. Keenan conducted a one-hour webinar which covered the following topics:
- Who is eligible for the subsidy?
- Which plans are subsidized?
- How does an employer get reimbursed for the subsidy?
- What communications need to be sent to eligible employees?
- What deadlines must be met?
- What plan changes are necessary?
- What are the penalties for noncompliance?
Click here to view the webinar.
All COBRA notices have been modified to reflect the changes. Clients should make sure that they only use the new notices going forward.
The Department of Labor's Employee Benefits Security Administration COBRA page now has available model notices updated for the extension provisions of the 2010 Department of Defense Appropriations Act. They are available at http://www.dol.gov/ebsa/COBRAmodelnotice.html.
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Directions and links to each of the model notices | ||
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IRS Notice 2009-27 |
- The following are additional resources you can use for compliance with this new law.