Headlines about "Health plan admin - COBRA"

Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Court Refuses to Award Penalties for Late COBRA Election Notice Without Showing of Harm or Prejudice
Excerpt: "EBIA Comment: The COBRA election notice must be 'furnished' within 44 days after the qualifying event of termination of employment if the employer is also the plan administrator. The preamble to the DOL COBRA regulations, together with a number of court decisions on the subject, indicate that the notice is timely if sent within the required period." (Employee Benefits Institute of America)

COBRA Premium Subsidy Doubled Enrollment, According to Study
Excerpt: "The percentage of laid-off employees that opted for COBRA coverage after the government offered a premium subsidy for the health care coverage was double the percentage that opted in during five months prior to the subsidy, according to a study." (Workforce Management; free registration required)

More Workers Using COBRA Benefits Even without the Subsidy
Excerpt: "A new analysis by Hewitt Associates shows that many workers are continuing to enroll in COBRA for health care insurance, despite the high price tag and the end of the government COBRA subsidy." (PLANSPONSOR.com)

End to COBRA Subsidy Means Higher Health Insurance Bills
Excerpt: "There's little chance that the subsidy will be renewed this election year, because Congress is in recess and little time remains in the session. But with the economy still struggling and layoffs continuing, hundreds of thousands of Americans may face a tough decision: Pay high COBRA premiums or drop coverage if they can't get cheaper individual policies." (USA TODAY)

[Guidance Overview] Court Rules COBRA Election Notice and Subsequent Letters Were Not Misleading
Excerpt: "EBIA Comment: Once the plan administrator has notified a qualified beneficiary of the COBRA premium payment obligations (e.g., how much to pay and when), the qualified beneficiary has the responsibility to make timely payment. Any further notification about premiums via billing statements, late-payment reminder letters, coupons, etc., is optional." (Employee Benefits Institute of America)

Dealing with Medicare Part B and COBRA Coverage
Excerpt: "The Social Security law allows people to postpone enrollment in [Medicare] Part B without penalty only if, and for so long as, they have group health insurance coverage that is provided by an employer for whom they (or their spouses) are still working." (Ford & Harrison LLP)

COBRA Subsidy Has Boosted Take-Up Rate, But Not to Extent Anticipated
Excerpt: "'Assuming that COBRA subsidies continue in the near term, policymakers could encourage employers to include premium payments in severance packages by giving firms a tax credit covering perhaps 50% of payments for ARRA-eligible workers,' . . . ." (Wolters Kluwer)

Health Insurance for Terminating Executives
Excerpt: "In addition to effectively eliminating executive-only supplemental plans, this may very well shut down the fairly common practice of providing post-severance health benefits (beyond COBRA) to terminating executives." (Ford & Harrison LLP)

A First Year's Report Card for the COBRA Premium Assistance Program
Excerpt: "Based upon a literature scan, key informant interviews, and available data, this brief addresses key questions: To what extent did subsidy increase take-up of COBRA coverage? Did subsidy reduce 'adverse selection' of older, sicker people into COBRA coverage? Are yet higher subsidies or other measures needed to move closer to full enrollment? What are the implications for COBRA policy under health reform and for the implementation of health reform itself?" (Urban Institute)

COBRA Subsidy Expires Amid Deficit Concerns
Excerpt: "Although supporters of COBRA subsidies will continue their push, it could become increasingly difficult to restart a program that has been expired for several months, especially as a contentious election season heats up." (Towers Watson)

[Guidance Overview] COBRA Subsidy Has Expired for Now (PDF)
1 page. Excerpt: "BUCK COMMENT. Although this is not new information, it reminds employers of the current state of the law. In addition to providing the statement by Borzi, the DOL reminded subscribers to its email alerts that the non-ARRA notices (both general and election notices) are posted to its website. These notices are the same as the notices that the DOL posted prior to ARRA, so employers can return to using them if they choose." (Buck Consultants)

[Opinion] Health Care Reform's No-Rescission Rule and COBRA: Do They Conflict?
Excerpt: "On June 28, 2010, the federal agencies that interpret the Act's mandates issued an interim final rule . . . explaining how the no-rescission rule works. This guidance raises the possibility that the no-rescission rule overrides certain fundamental COBRA principles. Plan administrators need to consider the implications of this no-rescission rule in planning for COBRA administration." (Thompson Publishing Group Inc.)

$2 Billion in COBRA Subsidy Benefits Paid in 2009, According to Report
Excerpt: "The report, which for the most part uses data collected from Form 941, emphasizes that because many health benefit plans cover spouses and dependents, subsidized coverage for two million households translates into coverage for substantially more than two million individuals." (Wolters Kluwer)

Senator Scales Back Proposed COBRA Subsidy Extension Plan
Excerpt: "Under the amendment that Sen. Casey proposed last week to tax extension legislation, employees laid off from June 1 through Nov. 30, would be eligible for the 65% federal premium subsidy for six months." (Business Insurance)

Revised Tax Bill Does Not Include COBRA Subsidy Extension
Excerpt: "A revised tax bill unveiled Wednesday, June 16, by Senate Finance Committee Chairman Max Baucus, D-Montana, does not include an extension of federal COBRA premium subsidies, further decreasing the likelihood that Congress will extend the subsidy." (Workforce Management; free registration required)

One-Third of Eligible Employees Take COBRA Subsidy, According to Preliminary Survey Results
Excerpt: "The 33% election rate for COBRA by terminated employees is significantly above the 20% average in previous Spencer COBRA surveys. In addition, 18% of employees covered by health care became eligible for COBRA in 2009, well above the 11% average in previous surveys." (Wolters Kluwer)

GAO Proactive Testing of ARRA Tax Credits for COBRA Premium Payments
9 pages. Excerpt: "Employers claiming COBRA credits use quarterly or annual payroll tax returns to report the number of former employees on COBRA and the amount of premiums paid. These returns do not require employers to provide any supporting information about individuals enrolled in COBRA or premiums paid on their behalf, potentially allowing unscrupulous employers to lower their payroll taxes by fraudulently claiming COBRA credits." (U.S. Government Accountability Office)

Senate Amendment Would Extend COBRA Subsidy
Excerpt: "Employees laid off from June 1 through November 30 would be eligible for COBRA premium subsidies under a tax bill amendment proposed Wednesday, June 9, by Sen. Robert Casey, D-Pennsylvania." (Workforce Management; free registration required)

COBRA Subsidy Boosts Take Up Rate, Survey Finds
Excerpt: "One-third of terminated employees chose the 65% COBRA subsidy in 2009, according to preliminary results of the 2010 COBRA Health Care Continuation of Coverage Survey being conducted by Spencer's Benefits Reports." (Wolters Kluwer)

House-Passed Bill Includes Fee Disclosure for Defined Contribution Plans, but No Extension of COBRA Premium Subsidy
Excerpt: "On May 28 the House passed H.R. 4213 by a narrow margin after various items were stripped from the bill, including an extension of the COBRA premium subsidy. Now headed to the Senate for approval, the bill includes pension funding relief for single-employer plans and new 'fee disclosure requirements' for defined contribution plans, which are highlighted [in the target document]." (Deloitte via BenefitsLink.com)

No Extension of Federal Subsidy of COBRA Premiums
Excerpt: "If you lose your job after June 1, you'll see more than just your paycheck disappear. You also won't get the 65% federal subsidy to cover your COBRA health insurance premium." (CNNMoney.com)

[Guidance Overview] Court Upholds DOL's Expedited Review of Eligibility for COBRA Premium Subsidy
Excerpt: "EBIA Comment: We note that in ruling against the employer on its claims of lack of statutory authority and denial of due process, this court pointed out that ARRA states that the expedited review procedure applies to 'any case in which an individual requests treatment as an assistance eligible individual and is denied such treatment by the group health plan.'" (Employee Benefits Institute of America)

Employers Can Help Wean Former Workers from COBRA
Excerpt: "'Employers are benefited by going the extra mile to make sure their former employees understand their choices in times like this. If the economy picks up again, for example, you may want to hire some of those workers back. And your HR department can be spared a lot of headaches by putting guidance like this together beforehand and communicating it to COBRA enrollees when the time comes,' she adds." (Employee Benefit News; free registration required)

Examination of Short-Term Impact of COBRA Premium Subsidy and Characteristics of COBRA Population (PDF)
Pages 10-14 of 18 pages. Excerpt: "This article examines trends in coverage through a former employer. It examines recent trends and also compares the characteristics of individuals with COBRA coverage with those of individuals having employment-based coverage through a current job." (Employee Benefit Research Institute)

COBRA Subsidy Stall Could Raise Premiums for Millions While Battle Rages Over 'Doc Fix'
Excerpt: "The subsidy [started expiring] June 1 and an extension was not included in a jobs bill passed by the House of Representatives last Friday.' A Department of Treasury study said premiums could rise from an average of $389 to more than $1,100 per month without the subsidy." (Henry J. Kaiser Family Foundation)

[Guidance Overview] Court Agrees with DOL that 'Mooning' by Employee Was Not 'Gross Misconduct'; COBRA Benefits Upheld
Excerpt: "In its determination letter to [the employer], the DoL told the employer that 'gross misconduct' generally must be something that would rise to the level of a felony or something that might lead to criminal charges." (PLANSPONSOR.com)

[Official Guidance] Connecticut Expands State Mini-COBRA Healthcare Continuation to 30 Months
Excerpt: "This change applies to both small employers (with under 20 employees) and large employers (with 20 or more employees)." (Infinisource)

House Benefits Bill Passes without COBRA, with Pension-Funding Relief and 401(k) Plans Fee Disclosure
Excerpt: "Among the 401(k) provisions in the bill, which passed 215-204, is a requirement that 401(k) service providers break down their fees into three categories: plan administration and recordkeeping fees, investment management fees and all other fees. Additionally, plan sponsors must list all fees subtracted from a worker's account on quarterly statements." (Employee Benefit Adviser; free registration required)

[Guidance Overview] Court Agrees With Employer's Decision to Not Offer COBRA Due to Employee's Gross Misconduct
Excerpt: "EBIA Comment: COBRA contains no definition of gross misconduct, but it's clear that termination for gross misconduct is not the same as termination simply 'for cause.' Because the courts have not agreed on a common standard to apply in gross misconduct cases, denials of COBRA coverage on account of gross misconduct should be made only after careful consideration. If, after obtaining legal advice, a plan decides to deny COBRA coverage, the employer should consider sending a letter to all affected qualified beneficiaries stating that COBRA coverage will not be offered." (Employee Benefits Institute of America)

Jobs Bill Passes House with 'Doc Fix' but Jettisons COBRA Benefits, Extra State Medicaid Funding
Excerpt: "[U]nder pressure from fiscal conservatives, Democrats dropped a COBRA subsidy extension to help newly laid-off pay for health coverage . . . ." (Henry J. Kaiser Family Foundation)

[Official Guidance] Connecticut Expands COBRA to Maximum 30 Months for State Insured Group Health Plans
Excerpt: "The legislation is effective and applies only to COBRA beneficiaries covered under a Connecticut-regulated health insurance policy on May 5, 2010, or who become eligible for COBRA under a Connecticut-regulated insurance policy after that date." (Jackson Lewis)

COBRA Assistance: A Lifeline for America's Unemployed (PDF)
2 pages. Excerpt: "Without the subsidy, COBRA coverage would consume 83.4 percent of an American family's monthly unemployment check, on average. Most unemployed families couldn't afford this cost and still pay for shelter, food, and clothing." (Families USA)

News Outlets Look at What COBRA Enrollees Can Do When Their Coverage Expires
Excerpt: "As the first of the laid-off to receive a 65 percent subsidy on the cost of continuing their former employer's coverage under COBRA prepare to try to afford coverage without the subsidy, news outlets are helping people examine their options." (Henry J. Kaiser Family Foundation)

[Guidance Overview] Court Awards No Penalties for Late But Corrected Election Notices; Also Awards Benefits of $396
Excerpt: "EBIA Comment: In finding no bad faith, the court also noted with approval the employer's practice of having outside auditors perform 'sampling audits' to ensure compliance with COBRA plus the steps taken to correct the error. Although the court held that nothing in ERISA requires an employer to have an oversight system in place, such a practice may serve to limit exposure to IRS excise taxes for failure to properly administer COBRA." (Employee Benefits Institute of America)

Democrats Moving to Extend COBRA Subsidy Expansion Through End of Year
Excerpt: "Tucked into a $190 billion jobs and tax bill the House plans to take up next week is an extension of the subsidy to help laid-off workers pay for COBRA health insurance benefits. Kaiser Health News reports that it would be the fifth time Congress has extended the subsidy since February 2009 as high unemployment continues." (Henry J. Kaiser Family Foundation)

New Data Indicates COBRA Subsidy Helped Middle-Class
Excerpt: "A new report [the U.S. Treasury Department Office of Economic Policy] suggests that the COBRA premium subsidy provided by the American Reinvestment and Recovery Act has helped Americans maintain insurance coverage during the recession, especially the middle class." (PLANSPONSOR.com)

House Poised to Consider COBRA Subsidy Extension
Excerpt: "Without action by the end of the month, those laid off after June 1 would have to pay the entire cost of continuing their health insurance . . . ." (Henry J. Kaiser Family Foundation)

Treasury Department Report Shows COBRA Subsidy Is Helping Middle Class Families
Excerpt: "The analysis, conducted by the Treasury Department's Office of Economic Policy, provides the first summary of the profile of unemployed individuals who obtained continuing health insurance coverage with the help of the Recovery Act COBRA subsidy." (U.S. Department of the Treasury)

[Guidance Overview] Employee Could Not Sue Employer for Denied COBRA Premium Subsidy Before Expedited Review by DOL
Excerpt: "EBIA Comment: The court's conclusion seems right to us on policy grounds, especially given how short the DOL's turnaround time has been in practice. The court's determination is also consistent with the more recent Temporary Extension Act (TEA) clarification that if the DOL determines that an individual is eligible for the premium subsidy and the employer fails to provide the subsidy, then the individual can bring a civil action to enforce the agency determination and for 'appropriate equitable relief.'" (Employee Benefits Institute of America)

[Guidance Overview] DOL Updates Subsidy Notices for Changes Made by Continuing Extension Act
Excerpt: "Because the extension created by TEA expired on March 31 -- before CEA was enacted -- individuals who experienced a qualifying event from April 1 through April 14 may not have been provided proper notice." (Employee Benefits Institute of America)

[Guidance Overview] Employee Benefits Developments April 2010
Articles include Department of Labor Issues More Guidance and Relief for 403(b) Plans; COBRA Subsidy Extended Through May 31, 2010; DOL Issues Model CHIP Notice; DOL Issues Final Rule on Underfunded Multiemployer Pension Plans; Change in Retiree Medical Benefits Does Not Violate ERISA; Retention of Corporate Limited Liability. (HodgsonRuss)

[Guidance Overview] DOL Updates Model COBRA Subsidy Notices; Notification Deadline May Be Soon for Certain Individuals
Excerpt: "In some instances, notice will need to be provided by mid-May." (Proskauer Rose)

[Guidance Overview] Health Plan Participant Had to Go Through Administrative Procedures to Appeal Denial of COBRA Subsidy Before Filing Suit
In response to a lawsuit by a participant who sued the employer but did not complete an application for review of her denial of her claim, the federal district court judge (District of Columbia) noted in the opinion that the DoL's guidance on its Web site directs individuals denied the COBRA subsidy to complete an 'Application for Review of Denial of COBRA Premium Reduction." (PLANSPONSOR)

[Guidance Overview] Understanding COBRA And Mini-COBRA Premium Assistance
Excerpt: "The Recovery Act also provides premium assistance to involuntarily unemployed workers who receive continued coverage under state programs, but only for those programs that are 'comparable' to COBRA." (Families USA)

Is Putting Older Kids on Your Health Plan the Best Option?
Excerpt: "Find out how much it will cost to cover your child. Some employer-provided plans charge a flat family premium, while others base premiums on the number of dependents covered . . . ." (USA TODAY)

[Official Guidance] DOL Updates COBRA Documents Available on Web Page
The Department of Labor's Employee Benefits Security Administration COBRA page now has available updated Model Notices, Application for Expedited Review of Denial of COBRA Premium Reduction, Fact Sheet, and Frequently Asked Questions (FAQs) that reflect the provisions of the Continuing Extension Act of 2010. (U.S. Employee Benefits Security Administration)

[Guidance Overview] Legislation Extends Eligibility Period for COBRA Premium Subsidy Until May 31, 2010
Excerpt: "COBRA administrators must scurry once more to update and send revised notices to inform individuals experiencing qualifying events after April 1 of their possible premium subsidy rights. Some of these individuals may have already been furnished with election notices that did not reflect the extension and will need to receive second notices." (Employee Benefits Institute of America)

[Guidance Overview] Eligibility for COBRA Premium Assistance Subsidy Extended through May 31, 2010
Excerpt: "Be alert for individuals who may not understand the law or who may be caught in the transition periods between the laws. Many plan sponsors have reported situations in which individuals are confused about their subsidy eligibility. Plan newsletters or other communications may be helpful to explain the subsidy to individuals, even if the plan has provided compliant COBRA notices." (The Segal Group, Inc.)

DOL Answers Questions on Health Reform and COBRA
Excerpt: "The Department of Labor's Web page on health care reform now contains a page of frequently asked questions (FAQs) about health care reform and COBRA. Three of the four questions ask about specific COBRA issues: was the COBRA premium subsidy extended by health care reform, was the 18 month COBRA maximum coverage period extended by health care reform, and was COBRA eliminated or changed by health care reform ? to which the answer for all of these is 'no.'" (PLANSPONSOR.com)

[Official Guidance] FAQs: Health Care Reform and COBRA
Excerpt: "Q1: Did the health care reform legislation extend the COBRA premium extension? No. The new health care reform legislation, The Patient Protection and Affordable Care Act (PPACA) as amended by the Health Care and Education Reconciliation Act, did not extend the eligibility time period for the COBRA premium reduction. Eligibility for the subsidy ends May 31, 2010; however, those individuals who become eligible on or before May 31, 2010 can still receive the full 15 months as long as they remain otherwise eligible." (U.S. Employee Benefits Security Administration)

[Guidance Overview] COBRA Subsidy Extended Through May 2010 (PDF)
4 pages. Excerpt: "For the third time, the COBRA premium subsidy program has been extended, this time through May 31, 2010, under the Continuing Extension Act of 2010 (Act). The key provisions of the Act include: The extension of the eligibility period for the COBRA subsidy through May 31, 2010. A new special election period and related notice requirement for individuals who experience a qualifying event that is related to a termination of employment on or after April 1, 2010, and before April 15, 2010." (Drinker Biddle & Reath LLP)

[Guidance Overview] Extension of COBRA Premium Subsidy to Cover Involuntary Terminations Through May 31, 2010
Excerpt: "To date, every time the premium subsidy program has been extended, the Department of Labor ('DOL') has provided revised general COBRA notices to alert qualified beneficiaries of potential rights under the program. At a minimum, employers should expect that they will be required to provide updated notices to individuals in the following two groups: Employees who were involuntarily terminated since April 1, 2010. It appears this notice will permit a retroactive election and a 60-day period within which to elect coverage. Individuals who experience a qualifying event (of any type) on or after April 1, 2010 but prior to May 31, 2010." (Michael Best & Friedrich LLP)

DOL Guidance on COBRA and Unemployment Insurance
Excerpt: "Agencies of the U.S. Department of Labor have updated guidance on COBRA and unemployment insurance following the enactment of the Continuing Extension Act of 2010 and the new health care reform laws. . . . As a result of the Continuing Extension Act, the COBRA subsidy is extended to May 31, 2010. The Employee Benefit Security Administration (EBSA) has updated its fact sheet on the COBRA subsidy to reflect that. EBSA has also created an FAQ web page focused on answering COBRA questions related to the new health care reform laws." (International Foundation of Employee Benefit Plans)

[Guidance Overview] Two-Month Extension to COBRA Subsidy Signed into Law on April 16, 2010 (PDF)
Excerpt: "The numerous extensions and new notice requirements have made the administration of COBRA continuation coverage requirements a challenge for employers, plans and administrators and additional extensions are likely. The Jobs for Main Street Act (H.R. 2847), passed by the House last December, would extend the COBRA subsidy program through June 30, 2010. InMarch, the Senate passed the American Workers, State, and Business Relief Act of 2010 (H.R. 4213), which would extend the COBRA subsidy program through December 31, 2010. It is possible that Congress will pass a longer-term extension before the Memorial Day Congressional recess, but the timing and legislative vehicle for such an extension remains uncertain." (Groom Law Group)

Another COBRA Subsidy Extension Enacted (PDF)
1 page. Excerpt: "BUCK COMMENT. Notices will have to be modified to describe the additional subsidy period and the ability to reinstate COBRA for affected individuals. Previous model notices issued by DOL can presumably be modified for this purpose." (Buck Consultants)

COBRA Premium Subsidy Extended (PDF)
2 pages. Excerpt: "Individuals who lose group health care coverage due to an involuntary termination of employment that occurs on or before May 31, 2010, and who otherwise qualify, can pay a reduced COBRA premium of 35% of the otherwise applicable cost for a period of up to fifteen months." (Bryan Cave LLP)

Recent Developments in Employee Benefits and Executive Compensation, April 2010
The newsletter describes recent developments on DOL's Proposal for Rules Effecting 401(k) Plan Investment Advice, Deadline to Adopt Restated Retirement Plan Documents, DOL's Final Regulations Governing Requirement that Multiemployer Pension Plans Furnish Information Upon Request, and the New Self-Reporting Requirements and Taxes for Failure to Satisfy COBRA and Other Federal Group Health Plan Mandates. (Blank Rome LLP)

COBRA Subsidy Period Extended Once Again
Excerpt: "This is a scenario that is likely to continue month by month for the remainder of this year until and unless HR 4213 (amended by Senate Amendment 3336) is passed. This bill has been passed by the Senate and is pending in the House. It would extend the subsidy eligibility period through the end of 2010." (Infinisource)

Senate OKs Short-Term Extension of COBRA Subsidy
Excerpt: "The Senate approved legislation Thursday that would extend federal COBRA health insurance premium subsidies to employees laid off from April 1 through May 31. The previous short-term extension of the 15-month, 65% federal premium subsidy for involuntarily terminated employees expired March 31." (Business Insurance)

Longer COBRA Premium Subsidy Extension Proposed
Excerpt: "The Senate may vote Wednesday on a legislative amendment that would extend federal COBRA health insurance premium subsidies to employees laid off from April 1 through May 31." (Business Insurance)

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