COBRA Subsidy: Answers for Employers

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "COBRA Subsidy: Answers for Employers"

Transcription

1 For Immediate Release: March 2009 Contact: Lisa R. Nelson, Esq. (858) COBRA Subsidy: Answers for Employers The American Recovery and Reinvestment Act of 2009 (ARRA) provides a subsidy to certain individuals who are eligible for Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation health coverage, or similar coverage under state law (e.g., Cal-COBRA). These Assistance Eligible Individuals (AEI) are required to pay only 35% of the COBRA premium. The employer will subsidize the remaining 65% and recover that 65% subsidy by taking the subsidy amount as a credit on its Quarterly [Payroll] Tax Return- IRS Form 941. Below are some of the questions Barney & Barney/Saylor & Hill received during the Webinars on this topic hosted February 26-27, 2009 by Lisa R. Nelson, Esq., Director of Compliance & Regulatory Affairs at Barney & Barney/Saylor & Hill, and Alfred (Mike) Fowler, Esq. Answers reflect Barney & Barney/Saylor & Hill s current understanding of the new law and is not intended as legal advice. Employers should consult with their legal counsel for guidance regarding compliance with the new law. ELIGIBILITY Q: Are spouses and dependents eligible for the COBRA subsidy? A: Yes. Any COBRA qualified beneficiary of the covered employee is also eligible for the subsidy, even when the employer does not ordinarily contribute toward any dependent premium. Q: Is my domestic partner or same-sex spouse eligible for the subsidy? A: No. ARRA is a federal regulation. Pursuant to the Defense of Marriage Act (DOMA), domestic partners and same-sex spouses are not entitled to federal COBRA or the federal COBRA subsidy. Q: If the employee was involuntarily terminated in August of 2008 but becomes eligible for COBRA on or after September 1, 2008, is the employee eligible for the subsidy? A: No. The employee must be involuntarily terminated on or after September 1, 2008 and before December 31, This rule also applies to severance packages. If the employee was terminated before September 1, 2008, but the severance package provided benefits for a period of time resulting in loss of coverage after September 1, 2008, the employee is not subsidy eligible. The involuntary termination date is the key date. Q: Is failing a drug test gross misconduct? A: Yes. Involuntarily terminated employees who were terminated due to gross misconduct, often arising to illegal behavior, are not COBRA or COBRA subsidy eligible. Q: Is an employee who was laid-off eligible for the subsidy? A: Yes. Involuntary termination includes lay-offs if for an indefinite or substantial amount of time. Q: Are teachers laid-off for the summer eligible for the subsidy?

2 A: Maybe. Teachers who are not offered benefits during the summer (regardless of whether the employer or the employee pays the entire cost) are only subsidy-eligible if the teacher does not return at the beginning of the next school year as a result of an involuntary termination or non-renewal of their contract. Teachers who voluntarily leave are not eligible for the COBRA subsidy. Q: Are employees suffering a reduction in hours eligible for the subsidy if the reduction resulted in a loss of eligibility for the group health plan? A: No. There has to be an involuntary termination in order to be subsidy eligible. Q: What if the employer goes out of business? A: If the group health plan terminates as a result of the business closing or Chapter 11 Bankruptcy/Liquidation, there is no COBRA or COBRA subsidy entitlements. If, however, the business is acquired, merged or a subsidiary of a parent company, the COBRA and COBRA subsidy obligations are passed along to the other company if any of the other companies offer a group health plan to any of their employees. Q: If an employee on FMLA leave does not return to work due to disability, is that an involuntary termination? A: Yes. Q: If an employee is not on FMLA but is on disability and a current COBRA participant, are they eligible for the subsidy? A: Yes. Any current COBRA participant beginning disability on or after September 1, 2008 and before January 1, 2010, which renders them unable to work, may be eligible for the subsidy. Q: Who determines whether an employee qualifies for the COBRA subsidy? A: The employer (or insurance carrier for small employers) will make the initial determination as to COBRA subsidy eligibility. If the employee disagrees with that determination, he or she may submit a review of a denial of treatment as an assistance eligible individual to the DOL. The DOL has 15 business days after receipt for the application to make a determination. Q: How does the employer determine when someone is no longer eligible for the subsidy? A: The COBRA participant is required to send notification to the COBRA administrator or employer when they are no longer subsidy eligible. Failure to properly notify may result in a penalty payment to the IRS of 110% of the 65% premium subsidy. ELIGIBLE PLANS Q: Does the employer provide the subsidy if the employer offers voluntary dental and vision that is 100% employee paid? A: Yes. The subsidy applies to all medical, dental, and vision plans. Flex Spending Accounts (FSA) are excluded. Q: Does the subsidy apply to supplemental plans such as long-term disability? A: No. EMPLOYERS Q: Do small employers (fewer than 20 employees) have to pay the subsidy? A: No. Small employers are responsible only for sending the COBRA subsidy notices. After the notices are sent,

3 the insurance carriers will be required to pay the 65% subsidy for AEI. Insurance carriers will receive a tax credit to reimburse them for the subsidies they provide. Q: Do non-profits have to comply with the new law, and if so, how will they be reimbursed? A: Yes. Non-profits must comply. Reimbursement will be a taken as a credit against employee income tax withholdings. Q: Do schools have to comply with the new law? A: Yes. State and governmental plans must comply with the new law. Q: Who pays the subsidy for multi-employer plans (MEWA) or Professional Employer Organizations (PEO)? A: The plan pays the subsidy, not the separate employers. The plan will receive reimbursement in the form of a tax credit against their employment taxes. SUBSIDY TERMINATION Q: In the event the involuntarily terminated employee finds new employment but is not eligible under the new employer s group health plan for days, does the subsidy apply? A: Yes. The employee will cease being subsidy eligible once they become eligible for another group health plan or Medicare. If there is a day waiting period, the employee is not yet eligible for the other group health plan until that waiting period is completed. Q: How does the subsidy work if the employee has TRICARE (military coverage)? A: TRICARE is not considered a group health plan as it relates to COBRA. Eligibility or participation in TRICARE does not preclude COBRA subsidy. INCOME THRESHOLD Q: If the employee s income exceeds the threshold of $145,000 for part of 2009 but is below $125,000 in 2010, could the employee receive the subsidy? A: Yes. If the employee does not waive the right to the subsidy, the employee is entitled to receive the full subsidy for both 2009 and The IRS will determine which portion will be paid back in the form of an income tax increase. Any persons receiving the COBRA subsidy making an adjusted gross income of at least $125,000 for individuals or $250,000 for families in the year they received the subsidy, will see an increase in their income tax liability the following April 15 th. If the individual makes more than $145,000, (or the family makes more than $290,000) the entire subsidy amount will be imputed income. The IRS will make these calculations. Employers are not required to take it upon themselves to figure out the adjusted gross income of the COBRA subsidy participants. SEVERENCE AGREEMENTS Q: How will the subsidy work with severances that pay all or a portion of the COBRA premium? A: Subsidy eligible individuals are required to pay 35% of their COBRA premium. If the employer pays 100% of the COBRA premium as part of a severance package, the employee does not have a portion of the COBRA premium in which to subsidize. The employer will still pay 100% of the COBRA premium as the severance agreement stated. If, however, the employer agrees to pay 50% of the COBRA premium and the employee pays 50%. The employer will subsidize 65% of the employee s 50% portion of the premium. For example, a plan charges a COBRA participant $1,000 (including the 2% administrative fee). As part of a severance package, an employer agrees to pay $ of the $1,000 premium. The COBRA participant would be

4 responsible for paying the $ difference. Under ARRA, the COBRA subsidy participant would pay 35% of the $ or $ The employer is eligible for subsidy reimbursement of 65% based on the employee s $ portion, equating to $ DEPARTMENT OF LABOR JOB POSTERS Q: Does the Department of Labor (DOL) require employers to use the Job Poster published by the DOL? A: The DOL did not formally indicate. However, it is our recommendation to post the fliers at all job sites. EMPLOYER REIMBURSEMENT/TAX TREATMENT Q: How will an employer be reimbursed for the COBRA subsidy that is provided to the eligible individuals? A: The COBRA subsidy amount is reimbursed by being claimed as a credit on the IRS Form 941. The revised form is now available on the IRS website (link below). Employers will insert the credit amount (total subsidy amount provided) on line 12a of Form 941. This amount will offset the amount the employer (or insurance carrier for small plans) will pay for income tax withholdings and FICA taxes. If the employer entitled to reimbursement does not have sufficient payroll taxes from which to recover the amount of the subsidies provided, the Treasury Department will credit or refund the difference in the same manner as if it were an overpayment of payroll taxes. The employer can decide either to offset its payroll tax deposits or claim the subsidy as an overpayment at the end of the quarter. Q: Does the subsidy need to be reported on the employee s W-2? A: Yes. The IRS will issue guidance in the next days in which W-2 box the subsidy will be reported. Q: Is the subsidy taxable to the individual? A: No. NOTICE Q: Does the employer provide notice to employees who resigned or voluntarily terminated, or just those that were involuntarily terminated? A: The employer must provide notice to all individuals who terminated employment during the applicable time period, and not just to individual who were involuntarily terminated. Q: When is the notice due and are employers responsible for tracking down former employees? A: The notice must be sent out by April 18, It is safe to use the W-2 addresses you have on the former employee. First-class mail is appropriate. Q: If the employee is involuntarily terminated December 1, 2009, do they receive only 1 month of subsidy? A: No. They will still receive the full 9 months of subsidy. The December 31, 2009 cut-off date is the termination date. The employee must be terminated by December 31, 2009 in order to be eligible for the COBRA subsidy. Q: If the employee was involuntarily terminated September 15, 2008 but did not elect COBRA, can he do so now? A: Yes. Any involuntarily terminated employee, and their qualified spouses and dependents, have another opportunity to elect COBRA if the termination occurred on or after September 1, Employees have 60- days from receipt of the COBRA subsidy notice to elect under this special enrollment period.

5 Q: If the COBRA member only has non-core dental/visions coverage, is the employer required to pay the subsidy? A: Yes. The subsidy applies to all medical, dental, and vision group health plans. Q: Can the employee choose a medical plan now, if at termination they only had non-core coverage? A: No. The employee is entitled to the same coverage they had at the time of termination. Upon open enrollment, COBRA participants are entitled to change their plan. ALTERNATIVE COVERAGE OPTION Q: Can an employee choose different medical coverage under the special enrollment period if they failed to elect COBRA when they terminated employment? A: Yes. But only if the employer permits. The employer may permit the former employees to elect a lower cost medical plan but only if is also offered to active employees and is not non-core only coverage, or onsite facility coverage. LAPSE IN COVERAGE Q: If the employee was terminated in September 2008 but did not elect COBRA and chooses to elect COBRA under the special enrollment period effective March 1, 2009, is the employee responsible for the premiums due from the original termination date? A: No. The clock will run for the maximum COBRA period permitted (18 or 29 months) starting at the original termination date in September 2008, but there will be a gap in coverage. The premiums will not be required to be paid back to September Coverage will start March 1, 2009 but the COBRA maximum duration will reduced as a result of the time clock starting at the original term date. Q: Will there be a lapse in coverage? A: There will be a lapse in coverage, however, the 63-day break in creditable coverage and pre-existing condition rules of HIPAA do not apply. EMPLOYER COSTS & RECORDKEEPING OBLIGATIONS Q: What will the COBRA subsidy cost employers? A: The entire 65% subsidy that employers provide to eligible individuals will be reimbursed by the U.S. government. The employer will have minor administrative costs associated with mailing the notices and recordkeeping. Q: What are the recordkeeping requirements? A: Those employers claiming credit must maintain supporting documentation for the credit claimed. Such documentation includes, but is not limited to: Information on the receipt, including dates and amounts, of the AEI s 35% share of the premium. In the case of an insured plan, copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier. In the case of self-insured plans, proof of the premium amount and proof of the coverage provided to the AEIs. Attestation of involuntary termination, including the date of the involuntary termination (which must be during the period from September 1, 2008 to December 31, 2009).

6 Proof of each AEIs eligibility for COBRA coverage and election. A record of the social security numbers of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for 1 individual or 2 or more individuals. Other documents necessary to verify the correct amount of reimbursement. PENALTY Q: What is the penalty for employers who fail to provide notice and/or offer the subsidy? A: A penalty of $100 per day can be assessed for failure to provide notice by April 18, ERISA provides additional civil penalties should a lawsuit occur as a result of the employer s failure to provide notice and/or offer the subsidy. ADDITIONAL GUIDANCE For additional guidance visit the DOL website at and the Internal Revenue Service (IRS) website at Employers can click on the statement Subscribe to this page just under the heading on the DOL website at the above link to get updates from the DOL, including an alert when the model notice is published. Barney & Barney/Saylor & Hill will also provide updates and further guidance as it becomes available. If you have any questions, contact your Barney & Barney/Saylor & Hill representative. Barney & Barney LLC is a California based privately held risk management and insurance brokerage firm providing solutions, services Barney and products & Barney in LLC commercial is a California property based and privately casualty held insurance, risk management employee benefits, and insurance workers brokerage compensation, firm providing executive solutions, personal services lines, and products surety in for commercial the past 100 property years. The and casualty firm also insurance, offers value employee added services benefits, in workers alternative compensation, risk financing, executive business personal continuity lines, and and loss surety control. for the past 100 years. The firm also offers value added services in alternative risk financing, business continuity and loss control.

New York COBRA Continuation Coverage Q&A

New York COBRA Continuation Coverage Q&A New York COBRA Continuation Coverage Q&A IMPORTANT NOTE: All statements contained in this Q&A document are for informational purposes only and should not be viewed as either legal or income tax advice.

More information

The American Recovery and Reinvestment Act of 2009. The COBRA Premium Subsidy & Other Changes. By Larry Grudzien Attorney at Law

The American Recovery and Reinvestment Act of 2009. The COBRA Premium Subsidy & Other Changes. By Larry Grudzien Attorney at Law The American Recovery and Reinvestment Act of 2009 The COBRA Premium Subsidy & Other Changes By Larry Grudzien Attorney at Law 1 What is being provided? The American Recovery and Reinvestment Act of 2009

More information

ARRA COBRA PREMIUM REDUCTION PROVISION SUMMARY AND FREQUENTLY ASKED QUESTIONS

ARRA COBRA PREMIUM REDUCTION PROVISION SUMMARY AND FREQUENTLY ASKED QUESTIONS **UPDATE** On December 19, 2009, Congress amended the ARRA by extending the COBRA premium reduction eligibility period from December 31, 2009, until February 28, 2010, and increased the maximum period

More information

New COBRA Rules Require Immediate Action

New COBRA Rules Require Immediate Action March 3, 2009 The Employee Benefits Practice Group at Murtha Cullina is pleased to provide clients and friends with information about topics of interest in the employee benefits area. If you have any questions

More information

Basic COBRA Facts. Coverage and eligibility

Basic COBRA Facts. Coverage and eligibility Basic COBRA Facts Overview Facts about COBRA coverage, eligibility, and rights and responsibilities of COBRA participants. Coverage and eligibility Qualifying events and length of coverage Responsibilities

More information

ARRA S IMPACT ON COBRA

ARRA S IMPACT ON COBRA Legislative Update February 26, 2009 ARRA S IMPACT ON COBRA The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Barack Obama on February 17, 2009. Although the provisions

More information

COBRA & Continuation Election Notice (Full Version)

COBRA & Continuation Election Notice (Full Version) COBRA & Continuation Election Notice (Full Version) Instructions: Pages 1-7 to be completed by group prior to giving notice and forms to the employee. Pages 9-12 only to be completed by the plan administrator

More information

COBRA Health Insurance Continuation Premium Subsidy

COBRA Health Insurance Continuation Premium Subsidy COBRA Health Insurance Continuation Premium Subsidy The Recovery Act established an employer-provided health insurance continuation subsidy for workers who involuntarily lost their jobs between Sept. 1,

More information

EMPLOYEE BENEFITS BULLETIN

EMPLOYEE BENEFITS BULLETIN EMPLOYEE BENEFITS BULLETIN January 20, 2010 Revised COBRA Model Notices Issued Reflecting Subsidy Extension The Department of Labor (DOL) issued updated model notices to reflect the COBRA subsidy extension

More information

New COBRA Subsidy Requirements

New COBRA Subsidy Requirements As appeared in Employee Benefit Plan Review, July 2009 New COBRA Subsidy Requirements By Marjorie M. Glover and Rachel M. Kurth, Chadbourne & Parke LLP Marjorie Glover Earlier this year, President Barack

More information

FAQs for Employees about COBRA Continuation Health Coverage

FAQs for Employees about COBRA Continuation Health Coverage FAQs for Employees about COBRA Continuation Health Coverage U.S. Department of Labor Employee Benefits Security Administration March 2011 Q1: What is COBRA continuation health coverage? Congress passed

More information

Model Supplemental Information Notice CEA

Model Supplemental Information Notice CEA Model Supplemental Information Notice CEA Model COBRA Continuation Coverage Supplemental Notice (For use by group health plans for qualified beneficiaries currently enrolled in COBRA coverage to advise

More information

REVISED COBRA MODEL NOTICES ISSUED REFLECTING SUBSIDY EXTENSION

REVISED COBRA MODEL NOTICES ISSUED REFLECTING SUBSIDY EXTENSION COMPLIANCE ALERT January 15, 2010 REVISED COBRA MODEL NOTICES ISSUED REFLECTING SUBSIDY EXTENSION The Department of Labor (DOL) issued updated model notices to reflect the COBRA subsidy extension included

More information

Model General Notice (abbreviated version)

Model General Notice (abbreviated version) Model General Notice (abbreviated version) Model COBRA Continuation Coverage Supplemental Notice (For use by group health plans for qualified beneficiaries currently enrolled in COBRA coverage with qualifying

More information

FREQUENTLY ASKED QUESTIONS ABOUT THE CONTINUATION COVERAGE REQUIREMENTS IN THE AMERICAN RECOVERY AND REINVESTMENT ACT February 2009

FREQUENTLY ASKED QUESTIONS ABOUT THE CONTINUATION COVERAGE REQUIREMENTS IN THE AMERICAN RECOVERY AND REINVESTMENT ACT February 2009 FREQUENTLY ASKED QUESTIONS ABOUT THE CONTINUATION COVERAGE REQUIREMENTS IN THE AMERICAN RECOVERY AND REINVESTMENT ACT February 2009 Introduction On February 17, 2009, President Obama signed into law the

More information

FAQs for Employees about COBRA Continuation Health Coverage

FAQs for Employees about COBRA Continuation Health Coverage FAQs for Employees about COBRA Continuation Health Coverage U.S. Department of Labor Employee Benefits Security Administration January 2012 Q1: What is COBRA continuation health coverage? Congress passed

More information

http://www.irs.gov/newsroom/article/0,,id=205364,00.html

http://www.irs.gov/newsroom/article/0,,id=205364,00.html Page 1 of 5 COBRA Questions and Answers: Administration and Eligibility AE-1 Q. Now that the legislation has passed, how is this going to be communicated to the employer/payroll community? A. The IRS will

More information

Comparison of Federal and Connecticut Continuation Laws

Comparison of Federal and Connecticut Continuation Laws COBRA CONNECTICUT Comparison of Federal and Connecticut Continuation Laws FEDERAL (COBRA) CONNECTICUT Covered Employers and Plan Coverage Qualified Beneficiaries (Employee / Dependents) Continuation Period

More information

User Guide. COBRA Employer Manual

User Guide. COBRA Employer Manual Experience Excellence COBRA Manual User Guide COBRA Employer Manual COBRA Responsibilities and Deadlines Under COBRA, specific notices must be provided to covered employees and their families explaining

More information

Client Compliance Manual

Client Compliance Manual Client Compliance Manual COBRAToday Client Administration Manual 1 Table of Contents This Administration Manual provides all of the guidance you need to properly manage your COBRAToday Plan. You will also

More information

FAQs about COBRA. FAQs About COBRA Continuation Health Coverage. 1 Discovery Benefit Solutions (DBS): 888 490 7530

FAQs about COBRA. FAQs About COBRA Continuation Health Coverage. 1 Discovery Benefit Solutions (DBS): 888 490 7530 FAQs About COBRA Continuation Health Coverage What is COBRA continuation health coverage? Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in

More information

Immediate Action Required to Implement COBRA Subsidy Provisions in Stimulus Plan

Immediate Action Required to Implement COBRA Subsidy Provisions in Stimulus Plan Employee Benefits & Executive Compensation Client Alert February 20, 2009 Immediate Action Required to Implement COBRA Subsidy Provisions in Stimulus Plan Employers who sponsor group health plans must

More information

CLIENT ALERT. Important information regarding. PENNSYLVANIA Mini-COBRA. For PA companies with less than 20 employees

CLIENT ALERT. Important information regarding. PENNSYLVANIA Mini-COBRA. For PA companies with less than 20 employees CLIENT ALERT Brought to you by: Important information regarding. PENNSYLVANIA Mini-COBRA For PA companies with less than 20 employees On June 10, 2009 Governor Edward G. Rendell signed Act 2 of 2009 to

More information

Comparison of Federal and California Continuation Laws

Comparison of Federal and California Continuation Laws COBRA CALIFORNIA Comparison of Federal and California Continuation Laws Covered Employers and Plan Coverage Qualified Beneficiaries (Employee / Dependents) Continuation Period FEDERAL (COBRA) Group health

More information

COBRA Changes under The American Recovery and Reinvestment Act

COBRA Changes under The American Recovery and Reinvestment Act COBRA Changes under The American Recovery and Reinvestment Act February 26, 2009 Eric R. Paley Kate Ulrich Saracene Overview Government subsidy for continuation coverage 65% of cost of COBRA coverage for

More information

INSIDE. Manage Complexities, Help Avoid Penalties. ibx.com/cobra. An Employer s Guide to COBRA

INSIDE. Manage Complexities, Help Avoid Penalties. ibx.com/cobra. An Employer s Guide to COBRA Manage Complexities, Help Avoid Penalties The recent ruling by the Supreme Court of the United States upholding the Health Care Reform Act does not affect an employer s obligation to offer COBRA continuation

More information

COBRA Common Questions: Definitions

COBRA Common Questions: Definitions Brought to you by Taylor Insurance Services COBRA Common Questions: Definitions What is COBRA? COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). COBRA is a federal statute

More information

Comparison of Federal and California Continuation Laws

Comparison of Federal and California Continuation Laws COBRA CALIFORNIA Comparison of Federal and California Continuation Laws Covered Employers and Plan Coverage Qualified Beneficiaries (Employee / Dependents) Continuation Period FEDERAL (COBRA) Group health

More information

Employer Health Insurance Forum. Presentation by the South Dakota Division of Insurance

Employer Health Insurance Forum. Presentation by the South Dakota Division of Insurance Employer Health Insurance Forum Presentation by the South Dakota Division of Insurance Employer Assistance Program Zaniya Task Force Recommendation HB1027 allows agents/insurers to provide insurance related

More information

Davis Wright Tremaine Employee Benefits Teleconference March 12, 2009

Davis Wright Tremaine Employee Benefits Teleconference March 12, 2009 Davis Wright Tremaine Employee Benefits Teleconference March 12, 2009 Panel of Presenters: Jeff Belfiglio, Moderator Elizabeth Deckman, Moderator Jason Frogatt Stuart Harris Holly Klein (Wylam) Call-in

More information

IRS Issues Guidance on COBRA Premium Subsidy IRS Notice 2009-27

IRS Issues Guidance on COBRA Premium Subsidy IRS Notice 2009-27 April 8, 2009 IRS Issues Guidance on COBRA Premium Subsidy IRS Notice 2009-27 On March 31, 2009, the Internal Revenue Service (IRS) issued much anticipated guidance on the COBRA premium subsidy provided

More information

Continuing Coverage under COBRA

Continuing Coverage under COBRA Continuing Coverage under COBRA The right to purchase a temporary extension of health coverage was created by the Consolidated Omnibus Budget Reconciliation Act of 1985, a federal law commonly known as

More information

COBRA and HIPAA Administration Services let us take the burden from you

COBRA and HIPAA Administration Services let us take the burden from you COBRA and HIPAA Administration Services let us take the burden from you PO BOX 1300 MANCHESTER NH 03105-1300 1-888-401-3539 FAX: 603-647-4668 THE CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT of 1985

More information

Pennsylvania Mini-Cobra Law

Pennsylvania Mini-Cobra Law Pennsylvania Mini-Cobra Law Pennsylvania Insurance Department On June 10, 2009 Governor Edward G. Rendell signed Act 2 of 2009 to help address the growing need to extend health care options for those newly

More information

Initial Notice of COBRA Continuation Coverage Rights Time Inc. Ventures Group Benefits Plan and Cafeteria Plan

Initial Notice of COBRA Continuation Coverage Rights Time Inc. Ventures Group Benefits Plan and Cafeteria Plan Initial Notice of COBRA Continuation Coverage Rights Time Inc. Ventures Group Benefits Plan and Cafeteria Plan Introduction You are receiving this notice because you have recently become covered under

More information

Initial COBRA Notification

Initial COBRA Notification JIM GIBBONS Governor LESLIE A. JOHNSTONE Executive Officer STATE OF NEVADA PUBLIC EMPLOYEES BENEFITS PROGRAM 901 S. Stewart Street, Suite 1001 Carson City, Nevada 89701 Telephone (775) 684-7000 (800) 326-5496

More information

COBRA Frequently Asked Questions (for employers)

COBRA Frequently Asked Questions (for employers) COBRA Frequently Asked Questions (for employers) What is COBRA? COBRA stands for the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA is a federal statute that requires employers to provide

More information

Federal Continuation Health Coverage Laws

Federal Continuation Health Coverage Laws Provided by: Capital Insurance Group Federal Continuation Health Coverage Laws PROVISION REQUIREMENTS COBRA applies to group health plans maintained by: Covered Employers Private-sector employers with

More information

COBRA Continuation Rights Under Federal Law

COBRA Continuation Rights Under Federal Law Article I. COBRA Continuation Rights Under Federal Law A federal law commonly referred to as COBRA requires that most employers sponsoring group health plans offer employees and their families the opportunity

More information

Questions and Answers from CIAB s COBRA Subsidy Webinar

Questions and Answers from CIAB s COBRA Subsidy Webinar Questions and Answers from CIAB s COBRA Subsidy Webinar 1. Is it required that a spouse be offered the COBRA subsidy if the employee they are married to dies? A: No, if the employee died before being involuntarily

More information

INFORMATION ON THE CONTINUATION OF GROUP HEALTH INSURANCE COVERAGE FOR NEW EMPLOYEES AND DEPENDENTS UNDER THE PROVISIONS OF COBRA IMPORTANT NOTICE

INFORMATION ON THE CONTINUATION OF GROUP HEALTH INSURANCE COVERAGE FOR NEW EMPLOYEES AND DEPENDENTS UNDER THE PROVISIONS OF COBRA IMPORTANT NOTICE HC-0247-1108q INFORMATION ON THE CONTINUATION OF GROUP HEALTH INSURANCE COVERAGE FOR NEW EMPLOYEES AND DEPENDENTS UNDER THE PROVISIONS OF COBRA IMPORTANT NOTICE CONSOLIDATED OMNIBUS BUDGET RECONCILIATION

More information

Application to the U. S. Department of Labor for Expedited Review of Denial of COBRA Premium Reduction

Application to the U. S. Department of Labor for Expedited Review of Denial of COBRA Premium Reduction Application to the U. S. Department of Labor for Expedited Review of Denial of COBRA Premium Reduction GENERAL INFORMATION: If you or a family member has lost employment, a new law may make it possible

More information

An Employer s Guide to Group Health Continuation Coverage Under COBRA

An Employer s Guide to Group Health Continuation Coverage Under COBRA An Employer s Guide to Group Health Continuation Coverage Under COBRA The Consolidated Omnibus Budget Reconciliation Act U.S. Department of Labor Employee Benefits Security Administration This publication

More information

THE STATE FARM INSURANCE COMPANIES GROUP HEALTH AND WELFARE PLAN FOR UNITED STATES EMPLOYEES SUMMARY PLAN DESCRIPTION. Effective January 1, 2012

THE STATE FARM INSURANCE COMPANIES GROUP HEALTH AND WELFARE PLAN FOR UNITED STATES EMPLOYEES SUMMARY PLAN DESCRIPTION. Effective January 1, 2012 THE STATE FARM INSURANCE COMPANIES GROUP HEALTH AND WELFARE PLAN FOR UNITED STATES EMPLOYEES SUMMARY PLAN DESCRIPTION Effective January 1, 2012 This document, together with the attached documents listed

More information

This booklet constitutes a small entity compliance guide for purposes of the Small Business Regulatory Enforcement Act of 1996.

This booklet constitutes a small entity compliance guide for purposes of the Small Business Regulatory Enforcement Act of 1996. This publication has been developed by the U.S. Department of Labor, Employee Benefits Security Administration (EBSA), and is available on the Web at www.dol.gov/ebsa. For a complete list of EBSA publications,

More information

IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage

IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage By Seth Perretta, Joel Wood and Matthew Fornataro of Crowell & Moring LLP On March 29, 2011, the

More information

Health Care Reform: Answers for Employers

Health Care Reform: Answers for Employers For Immediate Release: April 2010 Issue 2010 Volume 5 Contact: Lisa R. Nelson, Esq. (858) 875-3017 lisan@barneyandbarney.com Health Care Reform: Answers for Employers The Patient Protection and Affordable

More information

COBRA Participant Guide

COBRA Participant Guide COBRA Participant Guide COBRA Participant Guide 1 Table of Contents Introduction........................................... 3 COBRA Checklist........................................ 3 General Timeline

More information

An Employer s Guide to Group Health Continuation Coverage Under COBRA

An Employer s Guide to Group Health Continuation Coverage Under COBRA An Employer s Guide to Group Health Continuation Coverage Under COBRA The Consolidated Omnibus Reconciliation Act of 1986 U.S. Department of Labor Employee Benefits Security Administration This publication

More information

Presented by: Larry Grudzien Attorney at Law

Presented by: Larry Grudzien Attorney at Law Presented by: Larry Grudzien Attorney at Law We re proud to offer a full-circle solution to your HR needs. BASIC offers collaboration, flexibility, stability, security, quality service and an experienced

More information

EPK & Associates, Inc. MBA Health Insurance Trust Administrative Manual Regence. MBA HEALTH INSURANCE TRUST Administrative Manual

EPK & Associates, Inc. MBA Health Insurance Trust Administrative Manual Regence. MBA HEALTH INSURANCE TRUST Administrative Manual EPK & Associates, Inc. MBA Health Insurance Trust Administrative Manual MBA HEALTH INSURANCE TRUST Administrative Manual Key Contacts For answers to questions about benefits issues and for help with claims

More information

Guide to Counseling on Employer- Sponsored Health Coverage

Guide to Counseling on Employer- Sponsored Health Coverage Guide to Counseling on Employer- Sponsored Health Coverage February 2012 Table of Contents Introduction... 1 Assessing Current Health Coverage and Needs... 2 Understanding Employer-Sponsored Group Health

More information

Table of Contents. COBRA, HIPAA, and Direct Bill Administration Guide Table of Contents

Table of Contents. COBRA, HIPAA, and Direct Bill Administration Guide Table of Contents Table of Contents Table of Contents Table of Contents...1 Section 1 Introduction...4 Background and Summary of COBRA Law...4 Summary of Requirements...4 Employers Subject to COBRA...5 Small Employer Exception...5

More information

After You Retire. What Every Pension Recipient Should Know

After You Retire. What Every Pension Recipient Should Know After You Retire What Every Pension Recipient Should Know State of Michigan State Employees' Retirement System July 2015 After You Retire What Every Pension Recipient Should Know About the Office of Retirement

More information

This booklet constitutes a small entity compliance guide for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996.

This booklet constitutes a small entity compliance guide for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996. This publication has been developed by the U.S. Department of Labor, Employee Benefits Security Administration (EBSA). To view this and other EBSA publications, visit the agency s Website at dol.gov/ebsa.

More information

Sample COBRA OnQue Notice

Sample COBRA OnQue Notice General Notice of COBRA Continuation Coverage Rights Sample COBRA OnQue Notice Mr. John Doe 123 Main Street Anytown, CA 00000 From: Subject: Your Group Health Coverage Continuation Rights under COBRA IMPORTANT

More information

Continuation of Health Benefits Under COBRA

Continuation of Health Benefits Under COBRA HC-0262-1214 Fact Sheet #30 INTRODUCTION The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 requires that most employers sponsoring group health plans offer employees and their

More information

Continuation Coverage Rights Under COBRA

Continuation Coverage Rights Under COBRA Continuation Coverage Rights Under COBRA If you have and/or will become covered under the Bowling Green State University (BGSU) Group Insurance Plan (the Plan) it is important to know your COBRA rights.

More information

Deciding Whether to Elect COBRA Health Care Continuation Coverage After Enactment of HIPAA INTRODUCTION

Deciding Whether to Elect COBRA Health Care Continuation Coverage After Enactment of HIPAA INTRODUCTION Deciding Whether to Elect COBRA Health Care Continuation Coverage After Enactment of HIPAA Notice 98-12 INTRODUCTION A key decision that millions of Americans face each year is whether to elect COBRA 1

More information

The Top 10 COBRA Mistakes

The Top 10 COBRA Mistakes Employee Benefits Series HOW TO AVOID The Top 10 COBRA Mistakes 2012 2015 HR 360, Inc. 1 Introduction COBRA is a federal law that requires group health plans sponsored by employers with 20 or more employees

More information

COBRA Basics Q&A the following questions were asked during the two

COBRA Basics Q&A the following questions were asked during the two COBRA Basics Q&A the following questions were asked during the two COBRA Basics webinar sessions in January 2014 Q: Is COBRA triggered by an insurance qualifying event for a current employee who is not

More information

COBRA COBRA COBRA COBRA. COBRA and Minnesota Continuation Laws. Contents COBRA 2. State Continuation Laws 2. Qualifying Events 3

COBRA COBRA COBRA COBRA. COBRA and Minnesota Continuation Laws. Contents COBRA 2. State Continuation Laws 2. Qualifying Events 3 Contents COBRA and Minnesota Continuation Laws COBRA 2 State Continuation Laws 2 Qualifying Events 3 Qualified Beneficiary 5 Duration of Continuation of Coverage 6 Terminating Events 8 Premium Determination

More information

Covered California for Small Business. Employer Guide

Covered California for Small Business. Employer Guide Covered California for Small Business Employer Guide Table of Contents 1 Welcome to Covered California Overview of Covered California for Small Business Program 2 Small Business Tax Credits Privacy Statement

More information

An Employer s Guide to Group Health Continuation Coverage Under COBRA

An Employer s Guide to Group Health Continuation Coverage Under COBRA An Employer s Guide to Group Health Continuation Coverage Under COBRA The Consolidated Omnibus Budget Reconciliation Act EMPLOYEE BENEFITS SECURITY ADMINISTRATION UNITED STATES DEPARTMENT OF LABOR This

More information

About Your Benefits 1

About Your Benefits 1 About Your Benefits 1 BENEFIT HIGHLIGHTS Your Benefits. Provide Immediate Eligibility for You and Your Family As a Full-time or Part-time Employee, you are eligible for coverage under most benefits on

More information

Comparison of Federal and New Jersey Continuation Laws

Comparison of Federal and New Jersey Continuation Laws COBRA NEW JERSEY Comparison of Federal and New Jersey Continuation Laws Covered Employers and Plan Coverage Qualified Beneficiaries (Employee / Dependents) FEDERAL (COBRA) Group health plans maintained

More information

Comparison of Federal and New Jersey Continuation Laws

Comparison of Federal and New Jersey Continuation Laws COBRA NEW JERSEY Comparison of Federal and New Jersey Continuation Laws Covered Employers and Plan Coverage Qualified Beneficiaries (Employee / Dependents) FEDERAL (COBRA) Group health plans maintained

More information

PEBB Initial Notice of COBRA and Continuation Coverage Rights

PEBB Initial Notice of COBRA and Continuation Coverage Rights PEBB Initial Notice of COBRA and Continuation Coverage Rights You are receiving this booklet because you recently enrolled in Public Employees Benefits Board (PEBB) coverage. It explains how you can continue

More information

Illinois Insurance Facts Health Insurance Continuation Rights -- COBRA. Illinois Department of Insurance

Illinois Insurance Facts Health Insurance Continuation Rights -- COBRA. Illinois Department of Insurance Illinois Insurance Facts Health Insurance Continuation Rights -- COBRA Illinois Department of Insurance Updated July 2014 Note: This information was developed to provide consumers with general information

More information

AN EMPLOYEE S GUIDE TO HEALTH BENEFITS UNDER COBRA EMPLOYEE BENEFITS SECURITY ADMINISTRATION UNITED STATES DEPARTMENT OF LABOR

AN EMPLOYEE S GUIDE TO HEALTH BENEFITS UNDER COBRA EMPLOYEE BENEFITS SECURITY ADMINISTRATION UNITED STATES DEPARTMENT OF LABOR AN EMPLOYEE S GUIDE TO HEALTH BENEFITS UNDER COBRA EMPLOYEE BENEFITS SECURITY ADMINISTRATION UNITED STATES DEPARTMENT OF LABOR This publication has been developed by the U.S. Department of Labor, Employee

More information

Health Insurance Continuation Coverage Under COBRA

Health Insurance Continuation Coverage Under COBRA Health Insurance Continuation Coverage Under COBRA Janet Kinzer Information Research Specialist July 11, 2013 CRS Report for Congress Prepared for Members and Committees of Congress Congressional Research

More information

NLRG PARTNERING WITH YOU ON TRENDS AND BEST PRACTICES TO SUPPORT YOUR HUMAN RESOURCES INITIATIVES COBRA ADMINISTRATION: AN EMPLOYER GUIDE

NLRG PARTNERING WITH YOU ON TRENDS AND BEST PRACTICES TO SUPPORT YOUR HUMAN RESOURCES INITIATIVES COBRA ADMINISTRATION: AN EMPLOYER GUIDE NLRG PARTNERING WITH YOU ON TRENDS AND BEST PRACTICES TO SUPPORT YOUR HUMAN RESOURCES INITIATIVES COBRA ADMINISTRATION: AN EMPLOYER GUIDE COBRA ADMINISTRATION: AN EMPLOYER GUIDE TABLE OF CONTENTS SECTION

More information

COBRA AND Cal-COBRA. What is COBRA?

COBRA AND Cal-COBRA. What is COBRA? COBRA AND Cal-COBRA What is COBRA? The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a federal law enacted to help prevent gaps in healthcare coverage. COBRA applies in general to companies

More information

HEALTH REIMBURSEMENT ARRANGEMENT

HEALTH REIMBURSEMENT ARRANGEMENT HEALTH REIMBURSEMENT ARRANGEMENT C O M M U N I T Y C O L L E G E S Y S T E M O F N E W H A M P S H I R E S U M M A R Y P L A N D E S C R I P T I O N Copyright 2005 SunGard Inc. 04/01/05 TABLE OF CONTENTS

More information

Advanced COBRA Webinar

Advanced COBRA Webinar Advanced COBRA Webinar Presented by: Larry Grudzien Attorney at Law We re proud to offer a full-circle solution to your HR needs. BASIC offers collaboration, flexibility, stability, security, quality service

More information

Carpenters Health and Security Plan of Western Washington

Carpenters Health and Security Plan of Western Washington Carpenters Health and Security Plan of Western Washington COBRA Coverage Election Notice This notice contains important information about your right to continue your health care coverage in the Carpenters

More information

Confused about COBRA?: Understanding Federal and State Continuation of. Health Insurance Coverage. By Edie Lindsay, Troutman Sanders

Confused about COBRA?: Understanding Federal and State Continuation of. Health Insurance Coverage. By Edie Lindsay, Troutman Sanders This article presents general guidelines for Georgia nonprofit organizations as of the date written and should not be construed as legal advice. Always consult an attorney to address your particular situation.

More information

State of Utah DEPARTMENT OF INSURANCE

State of Utah DEPARTMENT OF INSURANCE Jon M. Huntsman, Jr. Governor Gary R. Herbert Lieutenant Governor State of Utah DEPARTMENT OF INSURANCE D. Kent Michie Commissioner State Office Building, Room 3110 Salt Lake City, UT 84114 Telephone:

More information

continuation coverage

continuation coverage at a glance What You Need To Know About COBRA & State Continuation Coverage Continuation Coverage Basics Oxford Continuation Coverage Contact Information Need to terminate an employee and/or dependent

More information

**CONTINUATION COVERAGE RIGHTS UNDER COBRA** BorgWarner Inc. Flexible Benefits Plan

**CONTINUATION COVERAGE RIGHTS UNDER COBRA** BorgWarner Inc. Flexible Benefits Plan **CONTINUATION COVERAGE RIGHTS UNDER COBRA** BorgWarner Inc. Flexible Benefits Plan Introduction This notice contains important information about your right to COBRA continuation coverage, which is a temporary

More information

Management Alert. California Supreme Court Approves Same-Sex Marriage & Bush Signs Genetic Information Act

Management Alert. California Supreme Court Approves Same-Sex Marriage & Bush Signs Genetic Information Act California Supreme Court Approves Same-Sex Marriage & Bush Signs Genetic Information Act A recent California Supreme Court decision to recognize same-sex marriages and recent federal legislation banning

More information

Health Reform Updates: Planning for 2013/2014 Compliance Discussion with Colorado AHU June 4, 2013

Health Reform Updates: Planning for 2013/2014 Compliance Discussion with Colorado AHU June 4, 2013 Health Reform Updates: Planning for 2013/2014 Compliance Discussion with Colorado AHU June 4, 2013 Shelly Winson for Benefits Compliance Link Team Karli Dunkelberger VP Business Development 949-702-3412

More information

COBRA AND HIPAA COMPLIANCE SURVIVAL

COBRA AND HIPAA COMPLIANCE SURVIVAL AND HIPAA COMPLIANCE SURVIVAL Managing Your Compliance Responsibilities.. 3 COBRA and HIPAA Procedure Manual... 6 HIPAA......... 11 Purpose.... 11 Who Must Comply... 11 Creditable Coverage.. 12 Pre-existing

More information

Frequently Asked Questions: The Affordable Care Act and You

Frequently Asked Questions: The Affordable Care Act and You Frequently Asked Questions: The Affordable Care Act and You This document provides answers to the common questions we receive regarding the Affordable Care Act and Health Insurance Marketplaces. If you

More information

COBRA & Continuation Election Notice

COBRA & Continuation Election Notice COBRA & Continuation Election Notice Instructions: Pages 1-7 to be completed by group and given to the employee. Page 7 only to be completed by the plan administrator and employee and returned to BCBSM,

More information

Laborers Metropolitan Detroit Health Care Fund

Laborers Metropolitan Detroit Health Care Fund Laborers Metropolitan Detroit Health Care Fund A VERY IMPORTANT NOTICE ABOUT CONTINUATION OF YOUR GROUP HEATH CARE COVERAGE TO: ALL EMPLOYEES AND DEPENDENTS PARTICIPATING IN THE LABORERS METROPOLITAN DETROIT

More information

Comparison of Federal and New York Continuation Laws

Comparison of Federal and New York Continuation Laws COBRA NEW YORK Comparison of Federal and New York Continuation Laws Covered Employers and Plan Coverage Qualified Beneficiaries (Employee / Dependents) FEDERAL (COBRA) Group health plans maintained by

More information

Provided By Touchstone Consulting Group Benefits for Same-sex Couples and Domestic Partners

Provided By Touchstone Consulting Group Benefits for Same-sex Couples and Domestic Partners Provided By Touchstone Consulting Group Benefits for Same-sex Couples and A significant number of U.S. companies provide benefits, such as health insurance coverage, for their employees domestic partners

More information

Continuation of. Health Insurance Benefits

Continuation of. Health Insurance Benefits Continuation of Health Insurance Benefits 1 Consolidated Omnibus Budget Reconciliation Act (COBRA) Coverage may be continued for up to 18 months through COBRA for the same or reduced coverage You will

More information

Flexible Spending Accounts

Flexible Spending Accounts Flexible Spending Accounts POLICY GUIDE Flexible spending accounts are arrangements that allow employees to pay for qualified health care or dependent care expenses on a pre-tax basis. Employers may offer

More information

Statement of Benefit Eligibility for Centrally Administered Employee Benefits Programs

Statement of Benefit Eligibility for Centrally Administered Employee Benefits Programs Statement of Benefit Eligibility for Centrally Administered Employee Benefits Programs Statement of Benefit Eligibility for Centrally Administered Employee Benefits Programs 3 Purpose To ensure compliance

More information

COBRA CONTINUATION OF COVERAGE

COBRA CONTINUATION OF COVERAGE COBRA CONTINUATION OF COVERAGE Consolidated Omnibus Budget Reconciliation Act (COBRA) COBRA is an acronym for the federal law known as the Consolidated Omnibus Budget Reconciliation Act of 1985. A provision

More information

Westinghouse Electric Company Events Guide

Westinghouse Electric Company Events Guide Westinghouse Electric Company Events Guide Benefits in the Event of: Leave of Absence Disability Layoff / Permanent Separation Death Furlough Voluntary Quit / Involuntary Termination Revised January 2015

More information

A Consumer Guide to Continuation of Group Health Insurance Coverage

A Consumer Guide to Continuation of Group Health Insurance Coverage A Consumer Guide to Continuation of Group Health Insurance Coverage Prepared by the Iowa Insurance Division Consumer Advocate 330 Maple Street Des Moines, IA 50319 877-955-1212 http://www.insuranceca.iowa.gov

More information

State of New Hampshire Employee Health Benefit Program. Health Reimbursement Arrangement. Benefit Booklet

State of New Hampshire Employee Health Benefit Program. Health Reimbursement Arrangement. Benefit Booklet State of New Hampshire Employee Health Benefit Program Health Reimbursement Arrangement Benefit Booklet January 2014 Table of Contents INTRODUCTION... 4 I. Benefits & Eligibility... 4 1. What Benefits

More information

IMPORTANT INFORMATION ABOUT YOUR COBRA CONTINUATION COVERAGE RIGHTS

IMPORTANT INFORMATION ABOUT YOUR COBRA CONTINUATION COVERAGE RIGHTS IMPORTANT INFORMATION ABOUT YOUR COBRA CONTINUATION COVERAGE RIGHTS What is continuation coverage? Federal law requires that most group health plans (including this Plan) give employees and their families

More information

APPENDIX D CONTINUATION OF COVERAGE SAMPLE DESCRIPTIONS

APPENDIX D CONTINUATION OF COVERAGE SAMPLE DESCRIPTIONS APPENDIX D CONTINUATION OF COVERAGE SAMPLE DESCRIPTIONS This Appendix contains important information about continuation coverage which may be available to Covered Individuals under federal and/or Illinois

More information

INITIAL NOTICE OF COBRA CONTINUATION COVERAGE RIGHTS **CONTINUATION COVERAGE RIGHTS UNDER COBRA **

INITIAL NOTICE OF COBRA CONTINUATION COVERAGE RIGHTS **CONTINUATION COVERAGE RIGHTS UNDER COBRA ** INITIAL NOTICE OF COBRA CONTINUATION COVERAGE RIGHTS **CONTINUATION COVERAGE RIGHTS UNDER COBRA ** Introduction It is important that all covered individuals (employee, spouse/domestic partner, and eligible

More information

SECTION 6.25 HEALTH INSURANCE Last Update: 06/09

SECTION 6.25 HEALTH INSURANCE Last Update: 06/09 SECTION 6.25 HEALTH INSURANCE Last Update: 06/09 Types of Insurance and Specific Carriers Health insurance is provided through Wellmark Blue Cross and Blue Shield. Blue Cross and Blue Shield coverage is

More information

General Notice. COBRA Continuation Coverage Notice (and Addendum)

General Notice. COBRA Continuation Coverage Notice (and Addendum) University Human Resources Benefits Office 3810 Beardshear Hall Ames, Iowa 50011-2033 515-294-4800 / 1-877-477-7485 Phone 515-294-8226 FAX General Notice And COBRA Continuation Coverage Notice (and Addendum)

More information