• Model Notice Published for Employers to Use for Premium Assistance Notification under Medicaid or CHIP

  • Introduction of Short-term COBRA Subsidy Extension Bill Expected


  • DOL Updates Application for Expedited Review of Denial of COBRA Premium Reduction



Model Notice Published for Employers to Use for Premium Assistance Notification under Medicaid and CHIP

On February 4, 2009, President Obama signed the Children's Health Insurance Program Reauthorization Act of 2009.  The Departments of Labor and Health and Human Services have released a model notice for employers to use to inform employees of potential opportunities currently available in the employee's state of residence for group health plan premium assistance under Medicaid and the Children's Health Insurance Program (CHIP).  The notice is available for download at http://www.cowanbenefit.com/files/chipmodelnotice2010.pdf.

Employers are required to provide these notices by the date that is the later of (1) the first day of the first plan year after February 4, 2010; or (2) May 1, 2010.  Accordingly, for plan years beginning between February 4, 2010 and April 30, 2010, the notice must be provided by May 1, 2010.  For employers whose next plan year begins on or after May 1, 2010, the Employer CHIP notice must be provided by the first day of the next plan year (January 1, 2011 for calendar year plans).

http://edocket.access.gpo.gov/2010/pdf/2010-2409.pdf



Introduction of Short-term COBRA Subsidy Extension Bill Expected

Senate democrats are expected to introduce a bill that would extend the COBRA premium subsidy for 15 to 30 days, making employees who were involuntarily terminated from March 1 through March 15 or 30 (depending on the length of the extension) eligible for the subsidy.  The purpose of the brief extension would be to buy time while developing a broader bill that would include a longer COBRA subsidy extension.

Read Business Insurance article at http://www.businessinsurance.com/article/20100223/NEWS/100229973.


"Stopgap COBRA Subsidy Extension Bill Expected," Jerry Geisel, Business Insurance, 2/23/10.



DOL Updates Application for Expedited Review of Denial of COBRA Premium Reduction

The DOL has posted updated instructions and an updated application for requesting a review of denial of the COBRA premium subsidy.  The updated form and instructions reflect the changes made to the subsidy under the Department of Defense Appropriations Act of 2010 (2010 DOD Act), including the extended eligibility period and the duration of the subsidy.  To access the updated form and instructions, go to http://www.dol.gov/ebsa/COBRA/main.html.