The Department of Labor (DOL) has published proposed regulations containing amendments to the COBRA notice provisions.  The amendments are intended to align the model general and election notices with the Affordable Care Act provisions already in effect and to ensure that the DOL will have flexibility to modify the model notices going forward.

The proposed amendments will eliminate the current (outdated) versions of the model general and election notices contained in the appendix to current regulations and permit the DOL to amend the notices as necessary going forward without additional rulemaking.  The preamble to the proposed regulations indicates that these changes will eliminate the confusion that may result from multiple versions of the model notices being available in different locations.

Contemporaneous with issuance of these proposed regulations, the DOL has issued updated versions of the model general notice and model election notice (which election notice is an update of the version of the election notice made available as part of Technical Release No. 2013-02 (Guidance on the Notice to Employees of Coverage Options under Fair Labor Standards Act §18B and Updated Model Election Notice under the Consolidated Omnibus Budget Reconciliation Act of 1985)).  The updated notices reflect that coverage is now available in the Marketplace and the updated model election notice provides information on special enrollment rights in the Marketplace. The use of the model notices is not required and the model notices are provided solely for the purpose of facilitating compliance with the applicable notice requirements.

Until final regulations are issued and effective, the use of the model notices available on the DOL website, properly completed, will be considered good faith compliance with the notice content requirements of COBRA.

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Photo of Melissa Ostrower Melissa Ostrower

Melissa Ostrower is a principal in the New York City, New York, office of Jackson Lewis P.C. and co-leader of the firm’s Employee Benefits practice group. She counsels clients in a broad range of employee benefit matters, including general compliance and administration of…

Melissa Ostrower is a principal in the New York City, New York, office of Jackson Lewis P.C. and co-leader of the firm’s Employee Benefits practice group. She counsels clients in a broad range of employee benefit matters, including general compliance and administration of qualified retirement plans and nonqualified retirement plans.

Melissa assists clients with welfare plan issues involving cafeteria plans, health plans, flexible spending accounts, COBRA and the Affordable Care Act. She regularly speaks on all benefits issues including federal health care reform, fiduciary compliance and executive compensation.

Melissa regularly advises on executive compensation matters, including issues related to compliance with Section 409A, 162(m) and 280G of the Internal Revenue Code.

Melissa represents clients in connection with Internal Revenue Service and the Department of Labor audits and information requests. She also regularly assists clients in fixing plan operational and document errors. Melissa negotiates with benefits providers, volume submitter and prototype vendors, TPAs, insurers and auditors.

Melissa also advises clients in connection with phantom and equity based compensation arrangements.