Group health plan sponsors and administrators may soon need to introduce changes to their offer of continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The House Education and Labor Committee has proposed temporary COBRA subsidies and other modifications as part of the current COVID-19 stimulus package that is working its way through Congress.

These proposals include a reduced COBRA premium for workers eligible for COBRA due to involuntary termination of employment or reduction in hours; a plan enrollment option to allow eligible individuals to elect a different coverage option sponsored by the employer; an extension of the election period; and new employer notice requirements. If included in the final bill, these changes could take effect as early as April 1, 2021.

For more details, read the Alert published today by our colleagues in the Employee Benefits and Executive Compensation Group.