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Total Administrative Services Corporation (TASC)
2302 International Ln
Madison, Wi 53704-3140
T: 888.595.2261

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New COBRA Election Notice Released

Madison, WI (June 24, 2013) – The Department of Labor has released a new COBRA election Model Notice template that mentions the Health Exchange as an alternative to COBRA coverage. And while we will revise our election notices to address this alternative, there is no requirement to notify current COBRA participants of the change.

We are ready! Our in-house attorney has drafted the notice that we will implement by the October 1 deadline. Doing so prior to that time is not necessary, as most states have not yet established their health exchanges.

The DOL’s primary intent behind the change is to inform potential COBRA participants of alternatives to COBRA coverage that may be available in the Health Exchange Marketplace.

Conversely, the recent update also removed information regarding the Pre-existing Condition Exclusion Rule and the Health Coverage Tax Credit, both of which are phased out and/or removed entirely by the Patient Protection & Affordable Care Act (PPACA).

Pre-Existing Condition Exclusion Rule – Language Removed from Model Notice

  1. Pre-existing condition exclusions are prohibited for all enrollees for Plan Years beginning on and after January 1, 2014.
  2. A break in coverage may not limit the pre-existing condition exclusionary period.
  3. Individuals are no longer required to exhaust COBRA coverage in order to purchase individual health insurance policies without a pre-existing condition exclusion.

Health Coverage Tax Credit – Phase Out

The update also removed language relating to the tax credit available through the Trade Act of 2002 that expires at the end of 2013. Under this Act, a tax credit could be issued to certain individuals that became eligible for trade adjustment assistance and certain retirees receiving pension payments by the Pension Benefit Guaranty Corporation (PGBC).

As always, TASC is committed to great customer service and solid compliance and administration of your COBRA accounts. For more information about the new template, contact Customer Care at 800-422-4661 or visit the Department of Labor website at http://www.dol.gov/ebsa/COBRA.html.

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Universal Benefit Account, AgriPlan/BizPlan and COBRA/Benefit Continuation

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Compliance and Distributor Access

For inquiries regarding your TASC service offerings:

Call: 608-241-1900 or 800-422-4661, M-F, 8-5, based on the area code where the call is coming from.

Every Wednesday morning phones are not available until after 9:00 am (CST), as our customer care team is in training.

Support Request: Log in to your MyTASC account and click on Contact Us.

Mail: Total Administrative Services Corporation
2302 International Lane
Madison, WI 53704

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