Learn more about Employee Benefits and Executive Compensation at Schiff Hardin. Attorneys In This Practice Suzanne M. Arpin Margaret C. Barker Lauralyn G. Bengel Bradford P. Campbell Katherine J. Levy Christopher J. Rillo Edward Spacapan Jr. Margaret A. Strothkamp B. Frank Thorn David H. Williams Schiff Hardin Offices One Atlantic Center, Suite 2300 1201 West Peachtree Atlanta, GA 30309 225 Franklin Street, Suite 2600  Boston, MA 02110  233 S Wacker Drive Suite 6600 Chicago, IL 60606 One Westminster Place Suite 200 Lake Forest, IL 60045 900 Third Avenue New York, NY 10022 One Market, Spear Street Tower 32nd Floor San Francisco, CA 94105 1666 K Street, NW Suite 300 Washington, DC 20006 - - - - - - - - - Join our mailing list. Forward this alert to a friend or colleague. - - - - - - - - -

Schiff Hardin Employee Benefits and Executive Compensation Group Update

COBRA Subsidy Extension Update — Updated Model COBRA Forms

In December, the American Recovery and Reinvestment Act of 2009 (ARRA) was amended by the Department of Defense (DOD) Appropriations Act, 2010 to (i) extend eligibility for the COBRA premium subsidy to individuals who are eligible for COBRA continuation coverage related to an involuntary termination occurring between September 1, 2008 and February 28, 2010 and (ii) extend the length of the COBRA subsidy period from nine months to 15 months.

The U.S. Department of Labor recently issued updated model notices that reflect these extensions. The notices are posted at www.dol.gov/ebsa/COBRAmodelnotice.html and are briefly described below.

1. Updated General Notice. Employers should provide the Updated General Notice to individuals who experience a qualifying event on or prior to February 28, 2010 and have not yet received a COBRA election notice. (Note: Certain individuals who already received a COBRA election notice should be given the Premium Assistance Extension Notice, as described below.)
2. Premium Assistance Extension Notice. Employers should provide the Premium Assistance Extension Notice to the following:
• Individuals who terminated employment on or after October 31, 2009 but did not receive a COBRA election notice that included the required information about the COBRA subsidy extension. Notice must be provided to these individuals no later than February 17, 2010.
• Individuals who were receiving premium assistance as of October 31, 2009 and are not in a "transition period" (as described below). Notice also must be provided to these individuals no later than February 17, 2010.
• Individuals who are in a "transition period." These individuals were receiving premium assistance as of October 31, 2009 and exhausted their nine-month COBRA subsidy period before December 19, 2009, but otherwise remain eligible for the COBRA subsidy. Notice must be provided to these individuals no more than 60 days after the first day of their transition period, which generally begins immediately after the original nine-month COBRA subsidy period ends. For example, individuals who exhausted their nine-month COBRA subsidy period on November 30, 2009 must be provided the Premium Assistance Extension Notice by January 29, 2010.
3. Updated Alternative Notice. The Updated Alternative Notice is intended for use by small employers who are not required to comply with federal COBRA but are subject to state laws that require continued health insurance coverage after an individual otherwise would have lost such coverage.

For more information on ARRA and its impact on COBRA, please see our previous updates entitled "New Federal Government Program: COBRA Subsidies" and "COBRA Subsidy Extended."

Please contact your Schiff Hardin LLP attorney or any of the individual attorneys listed in this update if we can be of assistance to you as you implement the COBRA subsidy extension provisions.

ABOUT SCHIFF HARDIN LLP

Schiff Hardin's Employee Benefits and Executive Compensation Group works with clients to determine which retirement and health/welfare benefits plans best suit their needs, and assists in the design and implementation of all types of stock-based plans, deferred compensation and employment arrangements. Our counseling extends to analyzing benefit formulas, investment alternatives and procedures, and issues of securities law and fiduciary concerns.

For more information, please feel free to contact us.