Update on COBRA Continuation Coverage Assistance under The American Recovery and Reinvestment Act (ARRA)

Update on COBRA Continuation Coverage Assistance under The American Recovery and Reinvestment Act (ARRA)

According to an update released by the United States Department of Labor on July 26, 2010, the Unemployment Compensation Extension Act of 2010 signed by the President on July 22, 2010, did not extend the COBRA premium reduction.

The American Recovery and Reinvestment Act (ARRA) provides a COBRA premium reduction for eligible individuals who are involuntarily terminated from employment through the end of May 2010. Due to the statutory sunset, the COBRA premium reduction under ARRA is not available for individuals who experience involuntary terminations after May 31, 2010. However, individuals who qualified on or before May 31, 2010 may continue to pay reduced premiums for up to 15 months, as long as they are not eligible for another group health plan or Medicare.

You can access a COBRA model election notice which does not contain the subsidy language by clicking the link below or for HR Works helpline clients, send us an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or give us a call at 381-8340 ext.1 and we’ll be happy to send you a model notice to use.

http://www.dol.gov/ebsa/modelelectionnotice.doc

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HR Works, Inc., located at 246 Willow Brook Office Park in Fairport (Rochester), New York, is a human resource management outsourcing and consulting firm serving more than 700 clients. HR Works provides benefits administration outsourcing; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; affirmative action programs; compensation programs; training of managers and HR professionals; and HRIS and self-service technology.

Outsourcing to HR Works saves us between $10,000 and $20,000 a year.