Excerpt from: Do Business in Vail!
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April 06, 2009 | | Employer Impacts – Attention ALL Employers Who Offer Group Health Insurance | The American Recovery and Restoration Act signed in law in February 17th, 2009, mandates that employers notify former employees and their dependents about the COBRA and State continuation premium reduction subsidy.
The U.S. Department of Labor (DOL) has created model notices to help employers and insurance plans comply with the subsidy requirements. Each model notice is designed for a particular group of qualified individuals and contains information to help satisfy the law’s notice provisions.
The notices are designed to inform former employees and their dependents about the subsidy and how they may elect the COBRA and continuation of coverage and the subsidy. The ARRA provides a 65 percent subsidy for the cost of heath benefits for those employees and their dependents that were involuntarily terminated from September 1st, 2008 to December 31st, 2009. Those who are eligible may take advantage of the subsidy for up to nine months. In some cases former employees who did not elect continuation of coverage may be allowed to do so under the ARRA law.
The following notices have been issued by the DOL and can be customized to your company. By law, notices in regards to the subsidy must be provided by to employees terminated on or after September 1st, 2008 no later than April 18th, 2009.
General Notice <http://www.dol.gov/ebsa/COBRAgeneralnoticefullversion.doc> : (Full version). Plans subject to the federal COBRA (employer who employ the equivalent of 20 or more employees on more than 50% of the typical business days in the pervious calendar year.) provisions must send the General Notice to all qualified beneficiaries, not just covered employees, who experienced a qualifying event at any time from Sept. 1, 2008 through Dec. 31, 2009, regardless of the type of qualifying event. This full version includes information on the premium reduction as well as information required in a COBRA election notice.
General Notice <http://www.dol.gov/ebsa/COBRAgeneralnoticeabbreviatedversion.doc> : (Abbreviated version). The abbreviated version of the General Notice includes the same information as the full version regarding the availability of the premium reduction and other rights under ARRA but does not include the COBRA coverage election information. It may be sent in lieu of the full version to individuals who experienced a qualifying event on or after Sept. 1, 2008; have already elected COBRA coverage; and still have it.
Alternative Notice <http://www.dol.gov/ebsa/COBRAalternativenotice.doc> : Insurance issuers that provide group health insurance coverage must send the Alternative Notice to persons who became eligible for continuation coverage (employers who employ less than 20 employees) under a state law. Continuation coverage requirements vary among states, and issuers should modify this model notice as necessary to conform it to the applicable state law. Issuers may also find the model Alternative Notice or the abbreviated model General Notice appropriate for use in certain situations.
Notice in Connection with Extended Election Periods <http://www.dol.gov/ebsa/COBRAextendedelectionperiodnotice.doc> : Plans subject to the federal COBRA provisions must send the Notice in Connection with Extended Election Periods to any assistance eligible individual (or any individual who would be an assistance eligible individual if a COBRA continuation election were in effect) who:
· Had a qualifying event at any time from Sept. 1, 2008 through Feb. 16, 2009, and;
· Did not elect COBRA continuation coverage, or elected it but subsequently discontinued COBRA.
This notice includes information on ARRA’s additional election opportunity as well as premium reduction information. IMPORTANT NOTE in regards to the extended election period: The extended election period does not apply to state continuation of coverage.
DO IT RIGHT… SAVE TIME…
The administration of the premium subsidy can be complicated and time consuming. The professionals of HRP have created a tool kit to help make the administration of this new law easier. For a limited time, purchase HRP’s Colorado State Continuation Premium Subsidy Tool Kit for only $250.
For more information on the content of the tool kit, open the attached document or contact HRP by clicking HERE or by calling us at 970-328-2860.
Human Resources Just Got a Lot Easier!
For more information on the COBRA and Continuation Assistance under the ARRA visit the DOL website or check out our archived trends and updates titled Premium Subsidy Bill by Clicking HERE.
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HR Trends and Updates is provided as a free service to the business community. If you have any questions about any of the topics included in HR Trends and Updates, or would like more information about how Human Resources Plus’ services please contact us at 970-328-2860 or e-mail us click HERE <mailto:becky@hrplusinc.com> or visit us at www.hrplusinc.com .
HRP can effectively assist you with your outsourcing needs which will reduce and control your operating costs and free up resources to focus on other aspects of your business.
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