LEGISLATIVE BRIEFS*
	COBRA Temporary Extension
	Proposition Q
	Children's Health Insurance Program Reauthorization Act of 2009
	The HITECH Rules: Impact on Insurance Brokers as Business Associates
	5500 Electronic Filing Reqirements for 2009 Plan
	2010 DOL Publishes Model ARRA NDAA Notices
	2010 Update on COBRA/ARRA Extension
	2009 Health Savings Accounts / High Deductible Health Plans Limits Released
	The Heroes Earnings  Assistance and Relief Tax (HEART) Act of 2008
	2008 Indexed Figures for Qualified Retirement Plans
*	Legislative Briefs are not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.

 

MEMORANDUM

 

2010-2

 

Update on COBRA/ARRA Extension

 

January 8, 2010

As we reported in our Legislative Update 2009-20 dated December 21, 2009, Congress extended the ARRA COBRA Subsidy benefits from nine months to fifteen months for Assistance Eligible Individuals (AEI) who undergo an involuntary termination of employment on or prior to February 28, 2010. Under the original ARRA legislation, an individual would qualify as an Assistance Eligible Individual as long as the involuntary termination of employment resulting in the loss of health care coverage as well as the inception of the COBRA benefit occurred prior to December 31, 2009.

 COBRA Entitlement Issue

With the signing of the Department of Defense Appropriations Act on December 19, 2009, containing the new COBRA legislation, individuals will qualify as Assistance Eligible Individuals so long as the involuntary termination resulting in the loss of coverage occurs on or before February 28, 2010, regardless of the inception date of COBRA coverage. To clarify this point, we have revised our original Legislative Update 2009-20 (Rev. 1-7-10), which is now available on the home page of our website: http://www.abferisa.com.

Model Notices

The Department of Labor (DOL) has submitted newly revised notices and an additional notice required under the new law, to the Office of Management and Budget for approval. It expects to provide these notices shortly. Plan Sponsors must notify all affected individuals by February 17, 2010. Historically, if the DOL encounters difficulty in this process, it can extend the February 17, 2010 deadline. As a result, I recommend that Plan Sponsors wait until the DOL publishes the new notices before notifying the affected group.

State COBRA Laws

It is also our understanding that the Governor’s office has provided a preliminary indication that California may not provide a similar extension. Other states may take a different position.

Copyright © 2010 Alfred B. Fowler, Attorney at Law.
All Rights Reserved. Reprint with permission only.
This legislative update is published as an information source for our clients and colleagues.
It is general in its nature and is no substitute for legal advice or opinion in any particular case.
mike@abferisa.com

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