The American Rescue Plan Act of 2021 (“ARPA”), which was just passed by Congress and will be sent to President Biden for signature, includes an opportunity for free COBRA coverage for a six-month period from April through September 2021 for employees (and their family members) who experience a loss of group health coverage due to
COBRA Subsidies for Involuntary Termination or Reduction in Hours – What is Old is New Again
There is an old saying – “People with weak stomachs should not watch sausage or legislation being made.” A great application of that aphorism is seen in the current COBRA subsidy proposed legislation making its way through Congress.
The idea is simple – if people need continuing health care coverage (COBRA coverage) because they are…
Second Circuit Affirms Dismissal of Claim Arising from Incorrectly Addressed COBRA Notice
By Neil V. Shah on
In Vangas v. Montefiore Medical Center, 2016 WL 2909354 (2d Cir. May 19, 2016), the Second Circuit affirmed the district court’s holding that an employer is not liable for failing to provide a COBRA notice to a terminated employee under ERISA § 502(c) where the employer followed reasonable procedures to ensure that notices were…
Same-Sex Spouse Has No Standing to Assert COBRA Notice Claim
By Lindsey Chopin on
A New Jersey federal district court held (in an unpublished opinion) that a former plan participant’s same-sex spouse who never enrolled in the benefit plan did not have standing to assert a claim alleging that his spouse’s employer failed to provide proper and timely notice of coverage under COBRA.
New Guidance on COBRA and ACA Marketplace Coverage: The Gap in Coverage is (Not Quite) Filled
By Damian A. Myers & Paul M. Hamburger on
There has been much confusion and concern about the interplay between the COBRA continuation coverage rules and the new Health Insurance Marketplace established under the Affordable Care Act (the “Marketplace”). One important question has been how individuals could transition from COBRA continuation coverage to (often cheaper) Marketplace coverage. Also, many individuals are confused about whether they should continue their available COBRA continuation coverage or separately opt for coverage through the Marketplace. To help clarify the rules, the government agencies have issued some important new guidance.
DOL Updates Model COBRA Notice in Light of Health Care Reform
By Roberta Chevlowe on
Come 2014, the Health Insurance Exchanges will provide another option to COBRA “qualified beneficiaries” who are considering whether to elect to continue health coverage under an employer’s group plan. In an effort to ensure that qualified beneficiaries understand this option, the U.S. Department of Labor has revised its model COBRA Election Notice to refer specifically…
Eighth Circuit Declines to Award COBRA Penalties in the Absence of Prejudice
In In re Interstate Bakeries Corp., 2013 U.S. App. LEXIS 1663 (8th Cir. Jan. 25, 2013), the Eighth Circuit affirmed the district court’s ruling that Hostess’ failure to provide a COBRA notice to a terminated employee did not cause the employee to suffer a sufficient degree of prejudice to be entitled to recovery of…