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COBRA Subsidy Extension and Expansion

Feb 10, 2010

American Recovery and Reinvestment Act
COBRA Subsidy Extension and Expansion

Per the previous broker communication the American Recovery and Reinvestment Act of 2009 (ARRA) was amended by the Department of Defense Appropriations Act, 2010.

As a result of the amended ARRA, we are targeting member mailings within the next two weeks.

Member mailing
We will be mailing notifications explaining how to request reinstatement of coverage. As a result, employers may see members who were previously terminated reappear on their monthly billing statements.

The notifications will be sent to:

  • Assistance Eligible Individuals (AEIs) who were receiving premium assistance as of October 31, 2009, including those who received the full nine months of premium assistance required under ARRA and did not make payment for subsequent periods of coverage.
  • AEIs who were receiving premium assistance as of October 31, 2009 and made payment of the 35% (or some other amount that is less than the full premium) or made payment of the full premium otherwise required to maintain coverage absent this subsidy.
  • AEIs who became AEIs or experienced a qualifying event that was the termination of a covered employee’s employment on or after October 31, 2009, but who were not provided a notice that included the information required by ARRA as amended.

New Jersey and Maryland model notices
New Jersey and Maryland released their state-specific model notices which will be distributed instead of the national notice.

Updated ARRA Attestation Form

There is the possibility of the subsidy extending again this year; if this occurs, we will communicate as soon as possible.
 

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