Proposed Updates to COBRA Notices Would Include ACA Health Insurance Exchange Information
Author: Gloria Ju
May 8, 2014
On May 2, the US Department of Labor (DOL) announced proposed updates to model notices informing employees of their eligibility to continue health care coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). As proposed, the updated model general notice and model election notice would make it clear to employees that, if they are eligible for COBRA continuation coverage when leaving a job, they would have the option to purchase coverage through the health insurance marketplace established by the Affordable Care Act (ACA).
Spanish language versions of the updated notices are being developed. Comments on the proposed changes must be submitted by July 7, 2014.
The proposed changes to the model notices offer information on more affordable options available through the exchange, where employees and their families may be eligible for financial assistance that would not otherwise be available for COBRA continuation coverage. In most cases, employees and their families eligible for but not enrolled in COBRA continuation coverage would be able to enroll in coverage via the exchange outside of the normal open enrollment period.
The DOL also released an updated model notice regarding premium assistance under Medicaid and the Children's Health Insurance Program.
Finally, the Department of Health and Human Services (HHS) published a clarifying bulletin regarding a special enrollment period in the exchange for individuals already enrolled in COBRA continuation coverage. HHS was concerned that the former model election notice provided insufficient information to COBRA-eligible employees and qualified beneficiaries of the option to elect health coverage through the exchange. The special enrollment period permits individuals to drop COBRA coverage and select a health plan via the exchange through July 1, 2014.