The Department of Labor (DOL) recently released a revised model COBRA election notice which includes information about coverage available through the state insurance exchanges. This change is aimed at informing individuals of the options available as an alternative to COBRA coverage. Though not required by the Affordable Care Act, the fact that the DOL has revised the notice to include this information is an indication that employers may want to revise their COBRA notices.

Group health plans are required to distribute COBRA continuation coverage election notices within 14 days of the plan administrator’s receipt of notice of a qualifying event. Qualifying events include, but are not limited to, the termination of employment or a reduction in hours of employment which causes a loss of coverage under the plan. In addition to including information on coverage available through the exchanges, the model notice informs individuals that they may be eligible to receive premium tax credits which will reduce the cost of the monthly premiums for coverage offered by the state insurance exchange.

As in the past, in order to properly utilize the model election notice, plan administrators must fill in the relevant information. Single-employer group health plans that utilize properly completed model notices will be deemed to be in compliance with COBRA’s election notice requirements.

For questions about COBRA’s election notice requirements or to discuss how the Affordable Care Act will impact your business or agency, please contact John Wahlin, Isabel Safie or Allison De Tal in the firm’s Employee Benefits practice group, or your BB&K attorney.