Guidance on COBRA changes issued

The Department of Labor (DOL) has created a website that includes frequently asked questions for employers about the Consolidated Omnibus Budget Reconciliation Act (COBRA) premium reduction under the American Recovery and Reinvestment Act of 2009 (ARRA), as well as COBRA AARA model notices. ARRA provides for a 65% reduction in COBRA premiums for up to nine months for those eligible for COBRA coverage who are involuntarily terminated between September 1, 2008, and December 31, 2009. Employers are entitled to a payroll tax credit for the 65% of the COBRA cost. Each of the four model notices DOL has issued is designed for a particular group of qualified beneficiaries and contains information to help satisfy ARRA’s notice provisions. DOL is offering a webcast on March 24 on COBRA AARA compliance. Likewise, DOL’s COBRA website links to additional guidance on the Internal Revenue Service’s website. The website and background on the COBRA changes are below.

DOL website
NSBA School Law pages on COBRA changes