The Consolidated Omnibus Budget Reconciliation Act, also known as COBRA, allows continued group health benefits to employees and their families provided by their group health plan for certain periods of time, under certain difficult circumstances.
These instances may include reduction in hours worked, job transitioning, job loss, deaths, divorces and other extenuating situations. According to the US Department of Labor, “qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.”
Additionally, COBRA outlines how workers and their families are able to choose continuation coverage as well as necessitating employers and health plans provide notice.
Recently, the Depart of Labor (DOL) has issued two proposed regulations updating the notices businesses are obligated to make available to workers and their qualified beneficiaries.
The DOL has stated that while the protocols are not likely to be finalized until later in the year, employers should consider utilizing the sample notices contained within the proposed regulations, so as to ensure compliance with COBRA. We recommend that you immediately begin using these model notices in place of your current COBRA notices.
You can view the revised notices on the DOL’s website by clicking here.
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