Do the various notices going out to COBRA subsidy-eligible individuals have to specify the amount that the individuals have to pay for their coverage (i.e., do they have to give the 35% amount) or can they state the 102% and require the individuals to make the calculation themselves?

Don't know if it's required, but ...

if you list the dollar amounts now, it may avoid some administrative disputes over pennies later.

I modified my COBRA rate chart to include both the full premium and the subsidized rate, with a note at the bottom saying that the subsidized rates apply only to qualified Assistance Eligible Individuals, for no more than 9 months. I certainly think it is a good idea to let them know, otherwise you risk either lots of miscalculated premium payments or lots of phone calls, both of which I prefer to avoid.

Well, the reason I ask is that a large, well-known COBRA administrator is apparently NOT including the 35% amount for its clients (at least the last I heard).

I agree that it makes sense to include the 35% amount from an administrative POV, but I was wondering if there is any legal requirement to do so as well.

Hmm. Well the COBRA notice regs say "(xi) A description of the amount, if any, that each qualified beneficiary will be required to pay for continuation coverage;" (29 CFR 2590.606-4(b)(4)(xi)) I would think this would still apply under the new notices, which would be why the DOL included both amounts in their models.

My thoughts EXACTLY.

Does the Assistance Eligible Individual pay 35% of the 102% or 35% of the 100% full cost PLUS the 2% admin fee? Seems that the employer pays for 65% of the 100% only. Can we "assume" that the individual electing the coverage pays the full admin fee?

Nothing in any of the documents I have seen separates out "premium" vs "admin fee". It is all just "COBRA premium", which in my mind, at least, means the employer premium plus the 2%. And employees pay 35% of the COBRA premium.

There is guidance that the AEI pays 35% of the 102% total COBRA cost.

As a follow on to this, at least TWO large COBRA administrators are not providing the 35% amount in the extended election COBRA notices. One of them (at least) is not including the 35% amount in the general notices going forward (and are just sending the old version of the COBRA notice along with a subsidy "insert").

Is anyone else experiencing this with their or their clients' COBRA notices? If so, what, if anything, are you doing about it?

Thanks.

Has anyone faced this situation?