As discussed in the NFC E-Alert issued on February 26, 2009, under the American Recovery and Reinvestment Act of 2009 (ARRA), the federal government may subsidize 65% of certain terminated employees' COBRA premiums if those employees were terminated between September 1, 2008 and December 31, 2009. 

The new model COBRA notices are now available at the United States Department of Labor website at http://www.dol.gov/ebsa/COBRAmodelnotice.html. This new legislation requires employers that sponsor group health plans subject to the Federal COBRA requirements to notify current and former participants and beneficiaries about the premium reduction and additional election periods now available for health care continuation coverage.

Employers are required to provide different notices to the following individuals:

• Individuals who were involuntarily terminated between September 1, 2008 and February 16, 2009 and either did not elect COBRA continuation or elected coverage but subsequently discontinued it must receive the Extended Election Period Notice.  The deadline for issuing this notice is April 18, 2009 .
• Individuals who had a qualifying event on or after September 1, 2008, elected COBRA coverage and are still covered should be provided the Abbreviated Version of the General Notice. This notice is limited to ARRA provisions.
• Individuals who had/have a qualifying event between September 1, 2008 and December 31, 2009 and have not yet been provided an election notice or who were provided an election notice on or after February 17, 2009 that did not include the new provisions mandated by the ARRA should be provided the General Notice

Employers who fail to provide the required notices are subject to penalties of up to $110 per day.

If your company has terminated or laid off any employees since September 1, 2008 or plans to do so before December 31, 2009, Nukk-Freeman & Cerra attorneys are available to assist with determining your company's notice obligations. If you wish to discuss these obligations or have other questions about the required COBRA notices, please contact any of the attorneys at Nukk-Freeman & Cerra at 973-564-9100.