Compliance Briefing Center

COBRA

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New Law Extends COBRA Subsidy Extension, Creates Additional Notice Requirements

Congress has recently acted again to extend the COBRA subsidy allowed by the American Recovery and Reinvestment Act (ARRA). By passing the Continuing Extension Act of 2010 (CEA), Congress extended the COBRA premium subsidy (as well as unemployment benefits) from March 31, 2010 to May 31, 2010.

In addition, the new law:

  • Extends eligibility for the COBRA ARRA subsidy to individuals whose original qualifying event was a reduction in hours that occurred between September 1, 2008 and May 31, 2010 and then were subsequently involuntarily terminated between March 2, 2010 and May 31, 2010.

In order to facilitate your full compliance with all COBRA regulatory requirements, WageWorks®  will again provide the necessary eligibility notices regarding the temporary extension to May 31, 2010 to all affected participants. The $6.00 fee per notice will apply for this communication.

Your assistance will be required to identify which participants were involuntarily terminated between March 2nd and May 31st, 2010.  For compliance reasons, we will need to receive this clarification by no later than May 31, 2010.

WageWorks anticipates further extension of these benefits may be forthcoming. As always, we will be keeping our clients informed of all regulatory changes as they occur.

Applications for Expedited Review of Denial of Cobra Premium Reduction, as well as updated Model Notices and further information on the Continuing Extension Act of 2010 are available at http://www.dol.gov/COBRA

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