FACING MORE HARDSHIP WITH COBRA
LAID OFF WORKERS, LOOKING FOR HEALTH INSURANCE! BEWARE OF COBRA
People who lose their jobs and the health insurance tied to them will have new coverage options. Guidance issued by the Departments of Labor (DOL) and the Treasury in April 3rd grants significant relief for individuals enrolled in COBRA coverage. Notably, it extends certain deadlines for plan participants, including the dates by which they must pay coverage premiums.
Because people have to pay the entire premium plus a 2 percent administrative fee, however, the coverage can be a financial hardship for people who are scrambling to keep up with expenses after losing their jobs.
COBRA relief under the Cares Act provides temporary help, in the following pages, we will provide actionable items employers can take to provide a safe harbor for employees and risk mitigation for employers.