Weekly HR News - COBRA

Weekly HR News – COBRA

Cities Subject to COBRA Should Use New Model Notices
Updated May 22, 2014

If you are subject to the provisions of Consolidated Omnibus Budget Reconciliation Act (COBRA) make note that the Department of Labor (DOL) has published a new model general COBRA notice and a new model election COBRA notice. The new model notices include language that states coverage is available in the public health insurance exchanges, aka, the “Marketplace,” and include information on special enrollment rights that are available in the Marketplace. The new documents can be found on the DOL website at http://www.dol.gov/ebsa/COBRA.html

Is Your City Subject to the Provisions of COBRA?

If your city has 20 or more employees, then you are subject to the provisions of the COBRA.  Cities with less than 20 employees are subject to the Kentucky State Continuation Coverage (KRS 304.18-110). 

What Does COBRA or State Continuation Coverage Provide?

COBRA, much like the Kentucky State Continuation coverage provisions gives certain former employees, their spouses (including former spouses), and dependent children the right to temporary continuation of health coverage at group rates.  This coverage is only available when coverage is lost due to certain qualifying events such as voluntary or involuntary termination of employment, reduction in the number of hours worked, divorce, or death of the spouse.  In addition, the employee, spouse or dependent of the employee will pay the actual cost of the insurance premium.  Information on COBRA as well as the State Continuation Coverage, can be found on the Kentucky Department of Insurance website at http://insurance.ky.gov/static_info.aspx?static_id=120&Div_id=16.

For additional questions regarding personnel or employment law issues, contact Andrea Shindlebower.