Guest Benefit Specialist Posted February 17, 2009 Posted February 17, 2009 Does anyone have a good handle on this new COBRA premium subsidy signed today by President Obama? If you have no employees who involuntarily were terminated or laid off during that specific time period 9/1/08 through present, does that mean you don't have to go back and do anything? I believe we will still have to update future COBRA notices even if you do not involuntarily terminate employees or lay them off. Any guidance would be appreciated.
J Simmons Posted February 17, 2009 Posted February 17, 2009 EBIA has a seminar on topic set for a week from today: An EBIA Web Seminar Date: Tuesday, February 24, 2009 Time: 1:00-2:30 p.m. ET (12:00 p.m. CT; 11:00 a.m. MT; 10:00 a.m. PT) Level: Intermediate http://www.ebia.com/Seminars/WebSeminar/19667 John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
CEB Posted February 18, 2009 Posted February 18, 2009 The seminar above costs $$-very expensive! Maybe benefit links will host a free seminar on this now (hint hint) I have read several articles and most state persons leaving employment for any reason between Sept. 1, 2008, and Dec. 31, 2009, must receive notices explaining the new COBRA rights & subsidy eligibility information (such as income caps, etc) . The DOL is suppose to come out with some sample notice in March...
CEB Posted February 20, 2009 Posted February 20, 2009 I should clarify that the reason you may want to provide "notice" is because involuntary termination is not defined by the act. If an employee terminated thier employment because they knew they were going to be laid off, is that voluntary or involuntary termination? The act is not very clear on the definition of involuntary termination. Better to be on the safe side for the general notice, and than on the back end have a list of employees that you believe fall into the involuntary termination or those that could possibly (example above) be considered a involuntary termination. You may want to check this out as well: http://benefitslink.com/framed/healthplanadmincobra.html
Guest taylorjeff Posted February 20, 2009 Posted February 20, 2009 NAHU is sponsoring a free webinar for members March 1st at 1pm EST. For non-members there is a $25 fee. Here is a link to the home page with info on the webinar: http://www.nahu.org/ "Also, NAHU has direct contact with the individuals at the Departments of Treasury and Labor who are crafting the guidance, notices and regulations right now. NAHU will submit any questions our members have to them directly so that they can address them in the materials they are currently preparing. If you have any additional technical compliance questions, please forward them to jgreene@nahu.org."
SLuskin Posted February 22, 2009 Posted February 22, 2009 NAHU is sponsoring a free webinar for members March 1st at 1pm EST. For non-members there is a $25 fee. Here is a link to the home page with info on the webinar:http://www.nahu.org/ "Also, NAHU has direct contact with the individuals at the Departments of Treasury and Labor who are crafting the guidance, notices and regulations right now. NAHU will submit any questions our members have to them directly so that they can address them in the materials they are currently preparing. If you have any additional technical compliance questions, please forward them to jgreene@nahu.org." March 1 is a Sunday. Is that really the date? I am a NAHU member. Thanks.
Chaz Posted February 23, 2009 Posted February 23, 2009 Is coverage under dental and vision plans eligible for the new COBRA subsidy? One would think not and many commentators have said that only major medical plans are covered, but my reading of the statute indicates that there is no exclusion for other health plans other than FSAs offered under a cafeteria plan). Including dental and vision plans (and other ERISA health plans for that matter) in the subsidy doesn't really make a whole lot of sense based on the subsidy cutoff provisions, etc., but I can't see any way around not including them. Has anyone given this any thought?
GMK Posted February 23, 2009 Posted February 23, 2009 I found this article useful: http://www.alston.com/files/Publication/00...%20Bulletin.pdf It says that the "Subsidy is available for any health coverage (including dental, vision, EAP, etc.) other than health FSA coverage offered through a cafeteria plan." Edit: typo
Chaz Posted February 23, 2009 Posted February 23, 2009 I found this article useful:http://www.alston.com/files/Publication/00...%20Bulletin.pdf It says that the "Subsidy is available for any health coverage (including dental, vision, EAP, etc.) other than health FSA coverage offered through a cafeteria plan." Edit: typo Well, at least A&B agree with me! It doesn't make much sense, though, when it comes to the subsidy cut off rules, which provide that becoming eligible for other health coverage cuts off the subsidy, except for becoming eligible for standalone dental, vision, etc. coverage. If I am receiving the subsidy for dental coverage and then become eligible for a standalone dental plan, does that mean I can keep getting the subsidy? I don't think this is what Congress intended.
GMK Posted February 23, 2009 Posted February 23, 2009 Chaz - I see your point. As I read it, the subsidy continues for COBRA continuation dental coverage premiums even when one becomes eligible for a stand alone dental plan, which is different from the case of medical coverage. Whatever intention Congress had, I think the loss of eligibility rules for the subsidy are meant to focus on the big issue (medical coverage) without requiring us to keep track of whether or not the person is still eligible for a subsidy for each of the other smaller parts (dental, vision, etc.). In cases where medical, dental, vision, etc. coverages are each under a separate policy in the group plan, and participants have options to continue or not continue each coverage, we would have to keep track of (and be able to justify) whether the subsidy still applies to each elected coverage each month. The way it is set up either you are eligible for the subsidy (and it applies to all your COBRA premiums), or you are not eligible for any subsidy. It could have been a lot more complicated.
Guest taylorjeff Posted February 23, 2009 Posted February 23, 2009 Sorry, my error. The webinar is March 2. NAHU is sponsoring a free webinar for members March 1st at 1pm EST. For non-members there is a $25 fee. Here is a link to the home page with info on the webinar:http://www.nahu.org/ "Also, NAHU has direct contact with the individuals at the Departments of Treasury and Labor who are crafting the guidance, notices and regulations right now. NAHU will submit any questions our members have to them directly so that they can address them in the materials they are currently preparing. If you have any additional technical compliance questions, please forward them to jgreene@nahu.org." March 1 is a Sunday. Is that really the date? I am a NAHU member. Thanks.
CEB Posted February 26, 2009 Posted February 26, 2009 http://www.irs.gov/newsroom/article/0,,id=204708,00.html
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