Proposed Changes to COBRA Notice


On May 2, 2014, the Employee Benefits Services Administration (“EBSA”) of the Department of Labor proposed regulations to amend the notice requirements under COBRA.

COBRA requires employers to provide notice to their employees regarding their eligibility to continue their employer-sponsored health care coverage following a qualifying event, which includes separation from employment.  Eligible employees are permitted to purchase COBRA coverage for a period of time at 102 percent of the cost of the coverage.

The proposed changes are designed to align the COBA notice requirements with the Affordable Care Act (“ACA”) provisions already in effect and those becoming applicable in the future.  Specifically, the updated notices indicate that former employees who are COBRA-eligible may instead choose to purchase coverage through the ACA’s Health Insurance Marketplace.  This option may provide individuals with lower premiums and financial assistance.

Connell Foley LLP’s labor and employment law attorneys will keep employers informed of the developments of this proposed change.  Please feel free to contact us with any issues your company may be facing related to the new health insurance requirements under federal law.