• COBRA Subsidy Sunset and Model COBRA Notices Posted by DOL
  • July 28, 2010 | Authors: Scott A. Behrens; Ruth Hays; Alan H. Kandel; Hillary L. Klein; Craig A. Kovarik; Patricia L. Martin; Brian W. Ruddell; Mark D. Welker
  • Law Firms: Husch Blackwell LLP - Kansas City Office ; Husch Blackwell LLP - St. Louis Office ; Husch Blackwell LLP - Chattanooga Office ; Husch Blackwell LLP - Kansas City Office ; Husch Blackwell LLP - Peoria Office ; Husch Blackwell LLP - Kansas City Office
  • The Federal COBRA subsidy available to employees who are involuntarily terminated has not been extended beyond May 31, 2010 (the statutory sunset date). Eligible employees who were involuntarily terminated prior to June 1, 2010 may continue to receive the COBRA subsidy for up to 15 months, as long as they are not eligible for another group health plan or Medicare.

    The Employee Benefits Security Administration (EBSA) recently posted updated model COBRA notices for use with employees (and their covered dependents) who terminate employment on or after June 1, 2010.

    What This Means To You
    Eligible employees who terminate on or after June 1, 2010, should receive COBRA notices based on the updated DOL model COBRA notices unless the statutory sunset date is extended by Congress.