COBRA NOTICES

As Basham Parker LLP reported in its March 2009 newsletter, the U.S. Department of Labor has issued preliminary direction on how the COBRA subsidy, recently passed by Congress as part of the economic stimulus package (the American Recovery and Reinvestment Act of 2009 [ARRA]), should be handled by employers. ARRA mandates that plans notify certain current and former participants and beneficiaries about the premium reduction. The Department has created model notices to help employers and plan administrators comply with these requirements. The model notices may be downloaded in modifiable format.