Headlines about "Health plan admin - COBRA"
Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Court Reduces Award of Unreimbursed Medical Expenses and Sustains Attorneys' Fee Award Following Second Appeal
Excerpt: "EBIA Comment: It's unclear when this employee's employment formally terminated or why his coverage continued for so long, but employers can take a lesson from this case. To reduce the risk of COBRA litigation, employers should adopt and consistently administer policies regarding the status of employees who are unable to return to work after injury or illness -- addressing issues such as when active health coverage terminates, whether the employee will receive some period of employer-paid coverage, and how that coverage will interact with COBRA." (Employee Benefits Institute of America)
[Guidance Overview] Additional Guidance on COBRA Subsidy (PDF)
3 pages. Excerpt: "The IRS recently posted some new questions and answers to its website on the federal COBRA premium subsidy included in the stimulus package enacted earlier this year. The IRS provides some leeway for employers in determining involuntary terminations and some other clarifications on the availability of the subsidy and claiming the payroll tax credit. In addition, the DOL and CMS each released guidance on the appeals process, including forms that individuals can use if they are denied COBRA premium assistance." (Buck Consultants)
[Guidance Overview] COBRA Continuation Health Coverage Under the American Recovery and Reinvestment Act (PDF)
Excerpt: "In general, COBRA coverage is based on the same coverage that a former employee had before they experienced an involuntary termination. Under ARRA, an employer may offer an eligible former employee the option of choosing other coverage that is offered to active employees and that does not have higher premiums than the coverage the eligible former employee had at the time of his or her involuntary termination." (WoltersKluwer Company via Winston & Strawn LLP)
[Guidance Overview] DOL Request for Additional Comments Pertaining to Procedures for Review of Denial of COBRA Subsidy
Excerpt: "On May 20, 2009, the Office of Management and Budget ('OMB') approved the Application and the Letter. The approval is scheduled to expire on November 30, 2009. Apparently motivated by the response it has received to the Application and the Letter, and in the context of the DOL's request to OMB for an extension of its approval, the DOL is now requesting additional comments on the Application and the Letter. Comments must be in writing and are due by August 14, 2009." (ERISA Lawyer Blog)
[Guidance Overview] DOL Comment Request Includes Form Letter to Contact Plan Administrator Regarding COBRA Subsidy Denial
Excerpt: "EBIA Comment: The application has already been posted on the DOL website for general use . . . . We note that the letter asks the plan administrator to provide the requested information to the DOL within two business days. If the DOL does not receive the information within that time period, it may make a determination solely on the basis of the information from the individual." (Employee Benefits Institute of America)
[Guidance Overview] Pennsylvania Enacts Mini-COBRA Law
Excerpt: "While Pennsylvania's Mini-COBRA law mirrors the Federal COBRA statute in many ways, there are significant differences, including: Mini-COBRA is available for nine months, as opposed to 18 or 36 months under Federal COBRA; Mini-COBRA applies only to hospital, surgical, and major medical policies, and does not apply to vision and dental plans; Mini-COBRA requires three months of coverage before employees become eligible as opposed to one day of coverage under Federal COBRA; Mini-COBRA ends upon eligibility for Medicare or group hospital, surgical or major medical coverage; whereas Federal COBRA eligibility ends upon actual enrollment or coverage; Mini-COBRA requires employee verification of non-eligibility for employer-based health insurance as a dependant through, for example, a spouse's group health plan; and Insurers, and not employers, bear responsibility for notifying eligible employees about their rights under Mini-COBRA. The plan administrator, or the employer if there is no designated plan administrator, is responsible for notifying the insurer of an employee's Mini-COBRA election within 14 days of receipt." (Blank Rome LLP)
[Guidance Overview] New IRS Q&As Related to COBRA Premium Subsidy (PDF)
3 pages. Excerpt: "Recently, the IRS issued nineteen new Questions and Answers ('Q&As') that provide additional guidance on the COBRA subsidy. In these Q&As, the IRS addresses some of the more difficult COBRA subsidy issues that employers and plan administrators may encounter . . . ." (Groom Law Group)
[Guidance Overview] COBRA Premium Subsidy: More Guidance from IRS, CMS and DOL
Excerpt: "IRS will defer to an employer's determination of whether an employee's termination was involuntary for purposes of the COBRA payroll tax credit as long as the determination is consistent with a 'reasonable interpretation' of the statute and IRS guidance. CMS issued a 'Request for Review' form for use by individuals denied COBRA premium assistance under public-sector government plans or state mini-COBRA laws. DOL issued a Spanish-language version of its 'Request for Expedited Review' form." (Deloitte via BenefitsLink.com)
[Guidance Overview] Pennsylvania Mini-COBRA Law Now in Effect
Excerpt: "Pennsylvania has adopted a 'mini-COBRA' law which covers group health insurance policies offered to employees of small employers. The new law protects employees who are not covered by the health coverage continuation rules imposed by COBRA at the federal level. Generally, insured group health plans offered by Pennsylvania employers with between two and 19 employees now must provide continuation of health insurance coverage under its group health insurance plans under circumstances similar to those set forth in the federal health coverage continuation rules frequently referred to as COBRA." (Fisher & Phillips LLP)
[Guidance Overview] Pennsylvania Legislation's Affect on Group Health Plans
Excerpt: "On June 10, Governor Edward G. Rendell signed into law four bills, each relating to significant health care initiatives. The new laws introduce COBRA-like requirements for small employers; extend the availability of health insurance coverage to certain older children; prohibit health care providers from seeking reimbursement for certain preventable medical errors; and reauthorize the Pennsylvania Health Care Cost Containment Council (PHC4)." (Ballard Spahr Andrews & Ingersoll, LLP)
[Guidance Overview] More IRS Q&As on COBRA Premium Assistance Subsidy
Excerpt: "EBIA Comment: Up to now, employers were caught between a rock and a hard place in close cases of involuntary termination. Treat the employee as eligible for the subsidy (based on a determination of involuntary termination) and risk being challenged by the IRS and then not getting reimbursed or, worse yet, getting hit with employment tax penalties for improperly claiming the tax credit. But treat the employee as ineligible (based on a determination of voluntary termination) and risk being reversed in a DOL expedited review procedure (which applies a 'de novo' standard rather than a reasonableness standard). The rock just got a little softer with this announcement of the IRS's reasonable determination standard for purposes of claiming the payroll tax credit. As a result, employers may wish to consider erring on the side of finding involuntary termination when there are reasonable arguments going each way." (Employee Benefits Institute of America)
[Guidance Overview] More IRS Guidance on COBRA Subsidy
Excerpt: "In the latest guidance, the IRS makes clear that employees called up from the reserves for active military service would be considered involuntarily terminated and thus eligible for the subsidy, assuming they opt for COBRA. 'This is the case regardless of whether the civilian employer treats the employee's absence as a termination of employment or a leave of absence,' the IRS said. Also eligible for the subsidy are elected officials who lost re-election or couldn't run for re-election because of term limits, the guidance notes. In addition, employees who are hired for only a limited period of time, such as a teacher hired for only one year, would be eligible for the subsidy." (Business Insurance)
Recession Hits COBRA Continuation Coverage, According to Survey
Excerpt: "Eligibility for COBRA continuation of coverage soared in 2008, while actual elections for the coverage plummeted, clear effects of the economic recession that began in 2008, according to the most recent COBRA continuation survey from Spencer's Benefits Reports. The 2009 COBRA survey also will provide a baseline of COBRA experience at the height of a recession but before the temporary 65% COBRA subsidy took effect." (Wolters Kluwer)
[Guidance Overview] Recent Additional Guidance Issued on COBRA Subsidy Rules
Excerpt: "As employers shift their focus with regard to the COBRA subsidy rules introduced by the American Recovery and Reinvestment Act of 2009 (ARRA) from the implementation to the administration of compliance programs, the federal government continues to issue useful guidance. The Department of Labor and Department of Health and Human Services have each published information and forms regarding an individual's right to appeal an employer's decision to deny the individual a reduction in the COBRA premium under ARRA." (Ballard Spahr Andrews & Ingersoll, LLP)
[Guidance Overview] Employee's COBRA Notice Claim Dismissed: Employer Offered Sufficient Evidence That Notice Was Properly Sent
Excerpt: "EBIA Comment: This case has only a short discussion of the COBRA claim, but it gives us the chance to reiterate a few important points about providing election notices. First of all, the plan administrator has the burden of proving that an election notice was provided (and remember that the plan administrator is the plan sponsor unless another person or entity is designated)." (Employee Benefits Institute of America)
[Guidance Overview] CMS Form and Instructions for Requesting Expedited Review of COBRA Premium Assistance Denial
Excerpt: "EBIA Comment: The CMS application is similar to the application posted by the DOL, which is for use by individuals covered by group health plans of private employers subject to the federal COBRA requirements who are requesting DOL review of their premium assistance denial . . . . Neither agency has yet posted instructions for employers to indicate how they might become involved in the review process, although the forms and instructions of both agencies request information about the employer and indicate that the information provided in the application may be shared with 'other parties to this review,' including the health plan and the employer." (Employee Benefits Institute of America)
[Guidance Overview] Minnesota Enacts COBRA Subsidy and Notice Requirement
Excerpt: "Minnesota has enacted a new law to provide a state subsidy to some former employees eligible for the federal COBRA subsidy. The new law is an attempt to avoid the cost of these former employees applying for health insurance under a state program. This new law is significant to employers because it requires employers with employees in Minnesota to provide those employees with notice of the Minnesota subsidy." (Dorsey & Whitney LLP)
[Guidance Overview] Pennsylvania Senate Backs Expansion of Mini-COBRA for State Residents
Excerpt: "The mini-COBRA policy will become effective as soon as Rendell signs the bill. The American Recovery and Reinvestment Act of 2009, also known as the federal stimulus act, provides a 65 percent federal subsidy for COBRA premiums. The benefit will not apply to workers who left their jobs before the bill's enactment." (The Philadelphia Inquirer)
[Official Guidance] IRS Posts New Q&As on COBRA Premium Subsidy Issues
Excerpt: "On June 4, the Internal Revenue Service (IRS) posted 19 new questions-and-answers on issues related to administration of the COBRA premium subsidy provisions under the American Recovery and Reinvestment Act (ARRA). Issues addressed include involuntary terminations, special election periods and payrolll tax credit processing." (Thompson)
Information and Case Management of COBRA Subsidy Denials Being Provided by Outsourced Private Firm
Excerpt: "Although the CMS appeals information can be accessed at http://www.cms.hhs.gov/COBRAContinuationofCov, the key Web site for subsidy denial information is http://www.continuationcoverage.net. The latter site is managed by MAXIMUS Federal Services, Inc. -- 'a government contractor with experience in performing impartial reviews of benefit claim disputes.' CMS contracted with MAXIMUS to provide administrative case management services and answer the public's questions about premium assistance and COBRA coverage." (Thompson)
[Official Guidance] Text of Spanish Language Version of DOL Form for Participants' Use in Requesting COBRA Premium Subsidy Denials (PDF)
11 pages. 'Solicitud de revisi?n acelerada de la negaci?n a la reducci?n de la prima seg?n COBRA al Departamento de Trabajo de los Estados Unidos." (Employee Benefits Security Administration, U.S. Department of Labor)
[Guidance Overview] DOL Issues Details of Appeal Process for COBRA Subsidy Denials
Excerpt: "The . . . memo summarizes two recent developments involving the COBRA subsidy under the American Recovery and Reinvestment Act of 2009 - the Department of Labor's application for appealing COBRA subsidy denials and IRS Website Q&As." (Groom Law Group)
[Guidance Overview] Employer Loses Bid to Avoid Trial on Alleged Failure to Provide COBRA Initial and Election Notices
Excerpt: "The court agreed that the employer had shown that a COBRA election notice was timely provided to the employee. But the court ruled that the employer had failed to show whether it had ever provided COBRA initial notices to the employee or his spouse, or whether it had ever provided COBRA election notices to the employee's spouse or to their minor children -- in effect putting the employer at risk for civil penalties, uncovered medical expenses, attorneys' fees, and costs for these alleged failures." (EBIA)
[Guidance Overview] No COBRA Qualifying Event Where Health Insurance Was Canceled Due to Employer's Non-Payment of Premiums
Excerpt: "The employee in this case sued his former employer in state court, alleging that the employer breached an employment agreement by terminating the employee's health coverage about two months before the employee terminated employment. In documents originally filed with the state court, the employee mentioned a possible violation of federal COBRA and, on this basis, the employer moved the case to federal court. In this decision, the federal trial court sent the case back to state court because it found the COBRA claim to be completely meritless . . . ." (EBIA)
[Guidance Overview] Overview of COBRA Premium Reduction Guidance in IRS Notice 2009-27 (PDF)
At pp. 7-11 of 13-page newsletter. Excerpt: "This article discusses some of the major issues raised in [IRS Notice 2009-27], including its guidance on what constitutes an 'involuntary termination' and the interplay of the premium reduction and coverage provided in connection with a severance policy or plan." (Trucker Huss)
Delta Pilots Union OKs Buyout Plan
Excerpt: "Delta Air Lines Inc. and its pilots union have come to a tentative agreement on an early retirement program to eliminate an unspecified number positions. In a Wednesday memo to pilots, Delta pilots union chairman Lee Moak said eligible pilots who elect to retire could receive up to nine month pay and benefits as part of an early-exit program." (Atlanta Business Chronicle via bizjournals.com; free registration required)
New York Employers Brace for COBRA Law to Strike
Excerpt: "New York employers are likely to see a spike in health costs courtesy of the new state and federal COBRA extension regulations. . . . [And] New York state officials have taken several steps to extend COBRA to small businesses. In March, Gov. David Paterson signed into law a 'mini-COBRA' bill that would help New Yorkers who lost their jobs at small businesses with fewer than 20 workers take advantage of a new COBRA subsidy made available under the federal stimulus bill." (Workforce Management; free registration required)
Getting it Right in Reductions in Force: How to Minimize Legal Risks (PDF)
8 pages. (Employee Benefit Plan Review via Jones Day)
[Guidance Overview] Election Notice Sent to Last-Known Address of Employee Terminated After Medical Leave Complied With COBRA
Excerpt: "EBIA Comment: The COBRA election notice generally should be sent to the qualified beneficiary's last-known address. DOL guidance provides that the notice should be mailed based on 'the most recent information available to the plan.' To this end, addresses used for COBRA purposes should be substantiated on a regular basis. One tool to help employers avoid COBRA lawsuits is to follow a policy of obtaining up-to-date mailing addresses from departing employees and forwarding them to other entities involved with plan administration (e.g., insurers and TPAs)." (Employee Benefits Institute of America)
[Guidance Overview] Wisconsin Legislature Passes Act Creating Extended Election Right for Wisconsin COBRA
Excerpt: "On May 15, 2009, Governor Doyle signed 2009 Wisconsin Act 11 (the 'Wisconsin Act') into law. Although the Wisconsin Act primarily deals with bailout money obtained from the federal government, it also has an impact on employers: it clarifies and expands an employer's obligations with regard to Wisconsin COBRA continuation coverage, it expands the situations in which an individual who voluntarily terminates employment can immediately receive unemployment benefits, and it extends the period over which benefits may be available when the percentage of unemployed workers is high. The health continuation requirements became effective on May 19, 2009. Employers subject to the Wisconsin COBRA notice provisions must comply by May 29, 2009." (Michael Best & Friedrich LLP)
[Official Guidance] DOL Explanation to Employees: Appealing a Denial of COBRA Premium Subsidy, Including Online Filing Procedure
Excerpt: "If you believe you are eligible for COBRA continuation coverage and for this premium reduction through a private sector health plan sponsored by an employer generally with at least 20 employees, but your request for these benefits or the reduced premium has been denied, you may apply to the U.S. Department of Labor to review the denial. If your continuation coverage is provided through a Federal, State or local government plan, or if it is provided pursuant to State insurance law, you should direct your request for review to the [United States] Department of Health and Human Services." (Employee Benefits Security Administration, U.S. Department of Labor)
[Guidance Overview] Fiduciary Liability Insurance Policy Does Not Cover COBRA Violation
Excerpt: "In a recent case, a federal appeals court held that a fiduciary liability insurance carrier was not liable to an insured-employer for litigation expenses incurred by the employer in the defense of a lawsuit based (in part) on the employer's alleged failure to offer COBRA coverage. . . . In this case, the employer was left with no coverage for the costs of the kind of lawsuit it might reasonably have foreseen when it purchased the policy. Employers that maintain fiduciary coverage should conduct a careful review of all policy provisions and exclusions to ensure there are no gaps in coverage. (Mary Kay Holding Corp. v. Federal Insurance Co., 5th Cir. 2009)" (Hodgson Russ LLP)
[Guidance Overview] DOL Unveils COBRA Appeals Process
Excerpt: "The U.S. Department of Labor has announced the appeal process individuals can use if they are denied a premium subsidy for their group health plan continuation coverage. . . . The appeal process allows applicants who are denied the subsidy to request a review by the Labor Department's Employee Benefits Security Administration (EBSA). Individuals seeking a review must complete the department's appeal form in order to begin the review process. [A]pplicants can submit the completed application online, by mail or fax. [The application is at http://www.dol.gov/ebsa/COBRA/main.html.]" (PLANSPONSOR.com; free registration required)
DOL Will Seek Public Comment on Draft Request Form for COBRA Subsidy Denial Reviews
Excerpt: "The Department of Labor (DOL) and CMS have prepared draft application forms for individuals to request federal review of COBRA premium subsidy denials. Certain people electing COBRA due to a recent involuntary job loss are eligible for the premium subsidy and can seek federal review if denied the subsidy. The DOL must finish its review within 15 days of receiving a completed form. Official publication of the draft forms is expected in late May and will include a public comment period." (Mercer LLC)
[Guidance Overview] Issues for Employers Implementing the New COBRA Subsidy (PDF)
8 pages. Excerpt: "An entity that fails to comply with the subsidy provisions is subject to the regular COBRA penalties of $100 per day, per violation. Further, any mistakes in subsidy administration may result in payroll tax penalties. If an entity claims a subsidy for someone and the IRS later determines that the person was not eligible or the amount was incorrect, the entity will have underpaid its payroll tax liability." (Miller Chevalier Chartered)
Though They Are Reimbursed, Firms Claim COBRA Cash-Flow Woes
Excerpt: "Small business owners are smarting over a provision in the Obama administration's stimulus package that requires them to pay 65 percent of COBRA health care insurance benefits to laid-off former employees. While the requirement, announced in February, was meant to ease the financial burden on those who lost their jobs because of the recession, it has caused cash-flow problems -- and in one case a few more layoffs -- for businesses that were already struggling." (Philadelphia Business Journal via bizjournals.com; free registration required)
California Assembly OKs Bill for Workers at Small Firms to Get COBRA Subsidy
Excerpt: "On Monday, the California Assembly voted unanimously to approve amendments to a bill (AB 23) that would allow laid-off workers from firms with fewer than 20 employees to qualify for federal subsidies for COBRA coverage, the Sacramento Bee reports (Sanders, Sacramento Bee, 5/12). The legislation applies to the Cal-COBRA program, which provides coverage for former workers from businesses with two to 19 employees (AP/San Francisco Chronicle, 5/11)." (California HealthCare Foundation)
Reporting of COBRA Subsidy
Excerpt: "'Joseph Tiberio, IRS Program Manager, Employment Tax Policy, has confirmed that the IRS will not require COBRA subsidy payments to be reported on Form W-2 or Form 1099.'" (Attorney B. Janell Grenier via Benefitsblog.com)
[Guidance Overview] COBRA Initial Notice Provided to New Employee Within 19 Days of Becoming Covered by Group Health Plan Was Timely
Excerpt: "EBIA Comment: Nothing unusual about the court's conclusions here, but both holdings are useful reminders of basic rules. Regarding the COBRA claim, few if any reported cases address the timing of COBRA initial notices but DOL regulations (not mentioned by the court) specifically do. Under those regulations, the general rule is that initial notices must be provided within 90 days after the date on which coverage under the plan commences. The employer in this case provided the notice well within that timeframe. Regarding the enrollment claim, while most courts follow the rule that informal representations cannot change the unambiguous provisions of a written plan document, plan sponsors should -- as a matter of good practice and to avoid litigated claims -- guard against making promises that are inconsistent with plan terms." (Employee Benefits Institute of America)
[Guidance Overview] IRS's Additional Q&As on COBRA Premium Assistance Subsidy
Excerpt: "EBIA Comment: This is the fourth installment of Q&As on the premium assistance subsidy to be posted on the IRS website." (Employee Benefits Institute of America)
[Guidance Overview] DOL and CMS Request for Comments on Draft Application for Expedited Review of COBRA Subsidy Denials
Excerpt: "EBIA Comment: Although these applications are not yet released for general use, it is reassuring to see them moving through the approval process. Interestingly, the DOL supporting statement indicates that individuals will be able to file their applications electronically through the EBSA website. In contrast, the CMS supporting statement provides that applications must be submitted either by mail or fax because CMS does not have the system capability to accept electronic submissions." (Employee Benefits Institute of America)
[Guidance Overview] COBRA Not Required Following Sham Termination of Employment
Excerpt: "EBIA Comment: The termination of a covered employee's employment is one of the seven triggering events listed in the COBRA statute that can be a qualifying event if it results in a loss of coverage. However, the term 'termination of employment' is not defined by the statute or regulations, leaving the determination to the courts." (Employee Benefits Institute of America)
DOL Close to Issuing Appeals Form for ARRA COBRA Premium Subsidy Program
Excerpt: "The U.S. Department of Labor is proposing a detailed form for alleged 'assistance-eligible individuals' to appeal an employer's denial of the COBRA premium subsidy program under the American Recovery and Reinvestment Act of 2009 (ARRA), and has asked for quick government approval so that the agency's expedited review process for subsidy denials can begin later this month." (Thompson Publishing Group)
[Guidance Overview] 'Sham' Termination Did not Trigger COBRA Eligibility
Excerpt: "A federal district court has denied COBRA claims from an employee whose termination it said was a 'sham.' According to EBIA, the court said the employee, who was fired and then immediately rehired, did not prove he had a qualifying event resulting in the loss of medical coverage. The court noted the employee's employment was not terminated since he remained employed with his employer without a break in service or reduction of hours - a 'sham termination' - which is not a qualifying event that triggers an obligation to offer COBRA, the news report said." (PLANSPONSOR.com; free registration required)
[Guidance Overview] IRS Confirms No Information-Reporting Requirement for COBRA Subsidy
Excerpt: "Employers will not need to report temporary COBRA premium assistance to eligible individuals on an information return or Form W-2, an IRS spokesperson told CCH on April 24. Recent news reports had indicated that the Service would not require information reporting. The IRS intends to update frequently asked questions (FAQs) on its website to reflect this treatment, the spokesperson added." (Wolters Kluwer)
Oregon Senate Passes Bill That Extends Federal Health Insurance Subsidy for Small Business Workers Recently Laid Off
Excerpt: "The Oregon Senate on Wednesday passed a bill that would extend federal COBRA subsidies to former employees of small businesses, the AP/USA Today reports. The coverage is part of the federal American Recovery and Reinvestment Act, which provides coverage of 65% of workers' COBRA premiums for nine months. The state bill allows former small-business workers to qualify for the same benefits . . . ." (Kaiser Family Foundation)
[Guidance Overview] COBRA Premium Subsidy Triggers Changes for Small Employers Under State Mini-Cobra Laws
Excerpt: "Federal healthcare continuation coverage requirements (generally referred to as 'COBRA') generally do not apply to group health plans sponsored by employers with fewer than 20 employees. However, The American Recovery and Reinvestment Act of 2009 ('ARRA'), does not limit its premium subsidy provisions to federally mandated COBRA coverage. The ARRA subsidy also applies to State programs that provide comparable continuation coverage (so-called 'Mini-COBRA' laws). In response to ARRA, some states have lengthened the period of coverage, some states have added a second chance to enroll, and other states have proposed legislation to provide for continuation coverage for the first time." (Dinsmore & Shohl LLP)
[Guidance Overview] No Penalties for Employer Not Providing COBRA Election Notice for Life Insurance Plan
Excerpt: "EBIA Comment: COBRA applies only to 'group health plans.' Under ERISA, a group health plan must provide 'medical care' within the meaning of Code Section 213(d). (Under the Code and PHSA, a group health plan must provide 'health care,' and the IRS has clarified that 'health care' has the same meaning as 'medical care' under Code Section 213(d).) The controlling term 'medical care' includes the diagnosis, cure, mitigation, treatment, or prevention of disease and any other undertaking affecting any structure or function of the body. COBRA does not apply to most life insurance plans because they do not provide medical care. But each life insurance plan must be examined carefully to determine whether any ancillary benefits for medical care are present." (Employee Benefits Institute of America)
Health Insurance Subsidy for Laid-Off Workers Has Holes
Excerpt: "A new federal subsidy designed to help laid-off workers pay for health insurance could be out of reach for thousands of jobless workers because they worked for a small company or their former employer has gone out of business." (USA Today)
[Guidance Overview] Government Guidance Clarification of Some COBRA Premium Subsidy Issues
Excerpt: "For purposes of COBRA administration, the IRS now defines involuntary termination as 'a severance from employment due to the independent exercise of the unilateral authority of the employer to terminate employment, other than due to the employee's implicit or explicit request, where the employee was willing and able to continue performing services.' The IRS further went on to indicate when an involuntary termination has occurred and when it has not in the following situations [noted in a chart]." (Michael Best & Friedrich LLP)
[Guidance Overview] Paychex Answers Small Business Questions on Stimulus Act Concerns
Excerpt: "New tax withholding tables and COBRA changes as a result of the American Recovery and Reinvestment Act of 2009 raise questions for small business owners on how to make changes required under the new law. Payroll tax experts from Paychex, Inc. have identified six top questions about the law from the company's small business clients." (PLANSPONSOR.com; free registration required)
Ohio Mini-COBRA Law Changes
Excerpt: "Small employers providing health care benefits to employees residing in Ohio need to take note of changes in Ohio's continuation coverage law, sometimes referred to as 'mini-COBRA.' The trigger for this law change was the COBRA premium subsidy provision included in the recent federal economic stimulus bill, which we have discussed in a series of prior posts and a recent webinar. But the changes in the Ohio mini-COBRA law extend beyond the premium subsidy issue, and continuation coverage will now be now be available to more individuals . . . ." (Porter Wright Morris & Arthur LLP)
Kansas Incorporates COBRA Extension into State Law
Excerpt: "Kansas Governor Kathleen Sebelius has signed legislation allowing certain workers that have lost their jobs to keep their employer-provided health insurance. A press release from Sebelius' office says HB 2052 accesses American Recovery and Reinvestment Act (ARRA) funds aimed at helping out-of-work Kansans keep their health care through 2010. The legislation amends the state continuation of coverage law (Kansas COBRA) to incorporate provisions and requirements of the ARRA." (PLANSPONSOR.com; free registration required)
COBRA Changes for Workers May Squeeze Their Former Employers
Excerpt: "Researchers at the consulting arm of Aon Corp., Chicago, have published data hinting at that possibility in a summary of results from an informal survey of 374 benefits buyers and other employer representatives . . . . Aon asked the participants about how they think the move to require employers to administer a new health benefits continuation program might affect the employers' overall health care costs. . . . About 42% of the survey participants said the COBRA subsidy will not increase their companies' overall health care costs, but 58% are expecting the subsidy program to increase health care costs." (National Underwriter Life & Health)
States Act to Help People Laid Off from Small Firms (PDF)
8 pages. Excerpt: "In the past two months, several states have taken action to make sure state residents who lose their jobs in small businesses can get the health coverage assistance offered them under the American Recovery and Reinvestment Act (ARRA), the economic stimulus legislation signed into law in February. ARRA included provisions to help laid-off workers keep their health insurance by making it more affordable for them to enroll in continuation coverage under the federal COBRA program or under state 'mini-COBRA' laws. . . . After ARRA (the Recovery Act) was enacted, many states took steps to improve their mini-COBRA laws so people in small firms would be able to take full advantage of the assistance offered by the federal government. However, in many states, gaps still remain, and those gaps leave people who have lost jobs in small firms with no, or limited, help." (Families USA)
[Official Guidance] The New Continuation Statute in Rhode Island Relating to Insurance - Extended Medical Benefits
Excerpt: "This act would provide a method to resume extended medical coverage when a person has declined to elect coverage within the timeframe provided." (State of Rhode Island via theworkplace.biz)
[Guidance Overview] COBRA Subsidy Provision Effects on COBRA Premiums when Employee has Same-Sex Spouse or Domestic Partner
Excerpt: "COBRA regulations do not require that you extend COBRA coverage to domestic partners of either sex or same-sex spouses, although many employers do so as part of their benefits package. One extra complication in the ARRA subsidy provision is that coverage for domestic partners, same-sex spouses and their children who are not dependents of the employee are not eligible for the subsidy." (TRI-AD)
[Guidance Overview] COBRA Guidance Highlights Potential Problem Areas
Excerpt: "In recent guidance, IRS addressed certain 'sleeper' issues that will affect administration of the new COBRA premium subsidy. Employers and administrators will need to watch for continuation coverage that is provided as a severance benefit, employer reimbursement of employee COBRA premiums, coverage of individuals who are not assistance eligible, health reimbursement arrangements, and eligibility for retiree medical coverage and coverage under a spouse's employer plan, among others. IRS Notice 2009-27." (Deloitte via BenefitsLink.com)
Rhode Island Law Expands COBRA Coverage to Former Employees of Small Businesses
Excerpt: "Rhode Island Gov. Don Carcieri (R) on Thursday signed into law a bill that 'officially closed a loophole' to allow workers laid off from small businesses or firms that dissolved to receive COBRA subsidies included in the federal economic stimulus package, the Providence Journal reports." (Kaiser Family Foundation)
[Guidance Overview] COBRA Worries Cash-Poor Businesses: Firms Must Pay Now, Wait for Reimbursement
Excerpt: "[Employers] must pay 65 percent of the COBRA premium and then file for reimbursement through a payroll tax credit. Employees pay the other 35 percent. Some companies are worried the federal requirement could cause cash flow problems because of the up-to-three-month delay for reimbursement, said Sue Mathiesen, director of research at McGraw Wentworth, a Troy, Michigan-based employee benefits and consulting company." (Workforce Management; free registration required)
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