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.
