Congress adjourned for its spring recess without renewing the COBRA subsidy, which was available for certain individuals who lost health coverage due to an employee’s involuntary termination through March 31, 2010. Congress reconvenes on April 12, and there is speculation that they may retroactively renew the subsidy for later terminations. Vigilant will keep members apprised. In the meantime, be aware that if an individual successfully appeals a denial of the COBRA subsidy, you and the insurance carrier have only 10 days after receiving notice from the U.S. Department of Labor (DOL) to reduce the individual’s rates. Otherwise, the DOL may assess civil penalties of up to $110 per day. The DOL recently posted new FAQs on their website about the COBRA subsidy. For further information, see our Legal Guide, “COBRA Provisions of the American Recovery and Reinvestment Act of 2010” (6015).
This website presents general information in nontechnical language. This information is not legal advice. Before applying this information to a specific management decision, consult Vigilant or legal counsel.