Notice Requirements
What notice requirements apply for individuals who become entitled to elect COBRA between April 1, 2021 and Sept. 30, 2021?
For individuals who first become entitled to elect COBRA coverage between April 1, 2021 and Sept. 30, 2021, the plan administrator must provide a written notification regarding the availability of the COBRA premium subsidy and the option to enroll in an alternative plan coverage option, if permitted by the employer.
The additional notification must also include: (1) the forms necessary for establishing eligibility for premium assistance; (2) the name, address, and telephone number necessary to contact the plan administrator and any other person with relevant information regarding the premium subsidy; (3) a description of the special 60-day election period; (4) a description of the qualified beneficiaries’ obligation to inform the plan administrator if the qualified beneficiary becomes eligible for disqualifying coverage; (5) a description, displayed in a prominent manner, of a qualified beneficiary’s right to a subsidized premium and any conditions on entitlement to the subsidized premium; and (6) a description of the qualified beneficiary’s option to enroll in different coverage, if permitted by the employer.
This notice requirement may be satisfied by amending the employer’s current COBRA notice or by supplementing the current notice with a separate notice. It is important to note that this notice requirement applies with respect to all COBRA election notices provided to qualified beneficiaries who become entitled to elect COBRA between April 1, 2021 and Sept. 30, 2021, and not just for those individuals whose COBRA qualifying event is an involuntary termination of employment or reduction in hours.
What notice requirements apply for individuals who became entitled to elect COBRA before April 1, 2021 and to individuals entitled to a second election period?
Notice of the premium subsidy also must be provided to AEIs who became entitled to elect COBRA before April 1, 2021 and to individuals who did not have a COBRA election in effect on April 1, 2021 but who would be an AEI if they had elected COBRA, or who previously elected COBRA and discontinued coverage before April 1, 2021.
This notice must be provided within 60 days of April 1, 2021 and must include the same information as specified in the question above that applies to individuals who become entitled to elect COBRA between April 1, 2021 and Sept. 30, 2021.
What other new notices does ARPA require?
Plan administrators must inform AEIs when the premium subsidy will end. This notice must be provided no more than 45 days, and no less than 15 days, prior to the premium subsidy expiration date. The notice must include, in prominent language, a statement that premium assistance will end soon and the exact expiration date. It also must include a statement that the individual may be eligible for unsubsidized COBRA or coverage through another group health plan. This notice is not required if the premium subsidy is ending because of an individual’s eligibility for coverage under another group health plan or Medicare.
Will Model Notices be issued?
Yes. The government agencies are required to issue model notices regarding the notice requirements described above. A model notice regarding the new COBRA election notification must be issued within 30 days of April 1, 2021, and a model notice regarding the expiration of an AEI’s premium subsidy period must be issued within 45 days of April 1, 2021.
For individuals who first become entitled to elect COBRA coverage between April 1, 2021 and Sept. 30, 2021, the plan administrator must provide a written notification regarding the availability of the COBRA premium subsidy and the option to enroll in an alternative plan coverage option, if permitted by the employer.
The additional notification must also include: (1) the forms necessary for establishing eligibility for premium assistance; (2) the name, address, and telephone number necessary to contact the plan administrator and any other person with relevant information regarding the premium subsidy; (3) a description of the special 60-day election period; (4) a description of the qualified beneficiaries’ obligation to inform the plan administrator if the qualified beneficiary becomes eligible for disqualifying coverage; (5) a description, displayed in a prominent manner, of a qualified beneficiary’s right to a subsidized premium and any conditions on entitlement to the subsidized premium; and (6) a description of the qualified beneficiary’s option to enroll in different coverage, if permitted by the employer.
This notice requirement may be satisfied by amending the employer’s current COBRA notice or by supplementing the current notice with a separate notice. It is important to note that this notice requirement applies with respect to all COBRA election notices provided to qualified beneficiaries who become entitled to elect COBRA between April 1, 2021 and Sept. 30, 2021, and not just for those individuals whose COBRA qualifying event is an involuntary termination of employment or reduction in hours.
What notice requirements apply for individuals who became entitled to elect COBRA before April 1, 2021 and to individuals entitled to a second election period?
Notice of the premium subsidy also must be provided to AEIs who became entitled to elect COBRA before April 1, 2021 and to individuals who did not have a COBRA election in effect on April 1, 2021 but who would be an AEI if they had elected COBRA, or who previously elected COBRA and discontinued coverage before April 1, 2021.
This notice must be provided within 60 days of April 1, 2021 and must include the same information as specified in the question above that applies to individuals who become entitled to elect COBRA between April 1, 2021 and Sept. 30, 2021.
What other new notices does ARPA require?
Plan administrators must inform AEIs when the premium subsidy will end. This notice must be provided no more than 45 days, and no less than 15 days, prior to the premium subsidy expiration date. The notice must include, in prominent language, a statement that premium assistance will end soon and the exact expiration date. It also must include a statement that the individual may be eligible for unsubsidized COBRA or coverage through another group health plan. This notice is not required if the premium subsidy is ending because of an individual’s eligibility for coverage under another group health plan or Medicare.
Will Model Notices be issued?
Yes. The government agencies are required to issue model notices regarding the notice requirements described above. A model notice regarding the new COBRA election notification must be issued within 30 days of April 1, 2021, and a model notice regarding the expiration of an AEI’s premium subsidy period must be issued within 45 days of April 1, 2021.
