---
title: Blog | legislative update
description: legislative update |
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# Soldevila.com Blog
## [New COBRA Subsidy Update March 2010](https://www.soldevila.com/blog/bid/26734/New-COBRA-Subsidy-Update-March-2010)
Posted by Dale Soldevila on Sun, Mar 21, 2010
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| COBRA Subsidy Extension Updated Model Notices For: March 31, 2010 Extension The DOL has just released Updated Model Notices for employers and plan administrators to use for their notification requirements under COBRA. The Temporary Extension Act of 2010 (TEA) extended the deadline for terminated employees to qualify for the COBRA premium subsidy. Under the law, as amended, workers now involuntarily terminated between September 1, 2008, and March 31, 2010, may be eligible for a 65% subsidy of their COBRA premiums for up to 15 months. Also under the TEA, an involuntary termination of employment that occurs on or after March 2, 2010, and follows a qualifying event that was a reduction of hours and that occurred at any time from September 1, 2008, through March 31, 2010, is also a qualifying event for purposes of the subsidy. A further extension of the COBRA ARRA subsidy is expected. If any extensions are enacted, you will be promptly alerted. The following are the updated notices: Updated General Notice Plans subject to the Federal COBRA provisions must provide the updated General Notice to all qualified beneficiaries (not just covered employees) who experienced a qualifying event at any time from September 1, 2008 through March 31, 2010, regardless of the type of qualifying event, and who have not yet been provided an election notice. This model notice includes updated information on the premium reduction as well as information required in a COBRA election notice. Model Notice of New Election Period Plans subject to continuation coverage provisions under Federal or State law should provide, within 60 days of the date of the termination of employment, a Notice of New Election Period to all individuals who: Experienced a qualifying event that was a reduction in hours at any time from September 1, 2008 through March 31, 2010; Subsequently experience a termination of employment at any point from March 2, 2010 through March 31, 2010; and Either did not elect continuation coverage when it was first offered OR elected but subsequently discontinued the coverage. Individuals who experience an involuntary termination of employment after experiencing a qualifying event that consists of a reduction of hours MUST be provided this notice within 60 days of the termination of employment. Special Note: Individuals who experienced a qualifying event (that was a termination of employment) on or after March 1, 2010 may not have been provided proper notice. These individuals should get the updated General Notice AND the full 60 days from the date the updated notice is provided to make a COBRA election. Model Supplemental Information Notice Plans that are subject to continuation coverage provisions under Federal or State law should provide the Supplemental Information Notice to all individuals who elected and maintained continuation coverage based on the following qualifying events: Terminations of employment that occurred at some time on or after March 1, 2010 for which notice of the availability of the premium reduction available under ARRA was not given; or Reductions of hours that occurred during the period from September 1, 2008 through March 31, 2010 which were followed by a termination of the employee's employment that occurred on or after March 2, 2010 and by March 31, 2010. Individuals who experience an involuntary termination of employment after experiencing a qualifying event that consists of a reduction of hours MUST be provided this notice within 60 days of that termination. Individuals with qualifying events that occurred on or after March 1, 2010 for which notice of the availability of the premium reduction available under ARRA was not given MUST be provided this notice before the end of the required time period for providing a COBRA election notice. Model Notice of Extended Election Period Plans that are subject to continuation coverage provisions under Federal or State law MUST provide, before the end of the required time period for providing a COBRA election notice, the Notice of Extended Election Period to all individuals who: Experienced a qualifying event that was a termination of employment at some time on or after March 1, 2010; Were provided notice that did not inform them of their rights under ARRA, as amended by TEA; and Either chose not to elect COBRA continuation coverage at that time OR elected COBRA but subsequently discontinued that coverage. Updated Alternative Notice Insurance issuers that offer group health insurance coverage that is subject to comparable continuation coverage requirements imposed by State law must provide the Alternative Notice to ALL qualified beneficiaries, not just covered employees, who have experienced a qualifying event through March 31, 2010. However, because continuation coverage requirements vary among States it should be further modified to reflect the requirements of the applicable State law. Issuers of group health insurance coverage subject to this notice requirement should feel free to use the model Alternative Notice, the model Notice of New Election Period, the model Supplemental Information Notice, the model Notice of Extended Election Period, or the model General Notice (as appropriate). For additional information, see the DOL’s updated COBRA Premium Reduction Fact Sheet. Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a "covered opinion" or other written tax advice and should not be relied upon for any purpose other than its intended purpose. |
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