COBRAToday Ready to Handle COBRA Extensions

By passing various legislative actions, Congress extended COBRA premium subsidies several times in 2009 and 2010 for those former employees who involuntarily lost their health coverage. Most recent legislation via the American Recovery and Reinvestment Act (ARRA) outlines the following regarding the COBRA insurance premium subsidy:

  • Extended eligibility for the subsidy from December 31, 2009 to May 31, 2010.
  • Extended the 65 percent subsidy from 9 months to 15 months.
The extensions were especially welcome news for those who continue to struggle with unemployment during these tough economic times. While discussions in Congress revolve around a further extension through the end of 2010, no such additional subsidy has been passed (as of June 14, 2010).

Managing and incorporating these legislative changes has posed challenges for employers, especially employers who have not outsourced their COBRA administration to a third-party administrator. COBRAToday is here to help you navigate the rough seas of COBRA administration. Would you like assistance implementing COBRAToday? If so, please contact a TASC Added Advantage Representative at 1-888-595-2261, ext. 17730.

Among other items, the legislation imposed the following:
  • A Primary Qualified Beneficiary (PQB) was eligible for the COBRA subsidy if their employment was involuntarily terminated (considered a qualifying event) on or before the May 31, 2010 sunset date.
  • Employers must notify current and future COBRA beneficiaries of the 15-month premium subsidy.
  • Employers must allow a 60-day time-frame in which retroactive premiums payments could be made for COBRA Assistance Eligible Individuals (AEI) (a) whose subsidy period had expired and (b) who had not yet paid their next premium.
  • Employers must grant retroactive coverage if requested so by beneficiaries whose subsidy had expired (and who had not paid the premium).
  • Employers may either offset future COBRA premiums for, or issue refund checks to, beneficiaries who overpaid their COBRA premiums.
Additional information is posted on the Department of Labor (DOL) website. We encourage you to visit this site often for regular updates. You may also wish to refer to the COBRA Premium Reduction Fact Sheet.

The TASC management team thoroughly examined and extensively discussed the many changes and increased workload required to handle the ARRA mandates for our COBRAToday Clients. We worked hard to manage the ARRA stimulus for you, and we did so without imposing any additional fees.

It’s more important than ever to outsource your COBRA administration to a quality administrator such as COBRAToday. TASC and COBRAToday are here to assist you with COBRA administration, including the modifications imposed by legislative changes.

If you need assistance implementing COBRAToday, please contact a TASC Added Advantage Representative at 1-888-595-2261, ext. 17730.