http://www.elinfonet.com/fedindex/4 Employment Law Articles covering the Consolidated Consolidated Omnibus Reconcillation Act (known as COBRA) Fri, 10 Feb 2012 03:02:08 EST en-us http://www.elinfonet.com/newscount.php?popID=9650 Article: 9650 webmaster@elinfonet.com (Employment Law Information Network) Mon, 09 Mar 2009 00:00:00 EST On Feb. 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (the “ARRA”). The ARRA seeks to stimulate the economy by authorizing approximately $787 billion in tax cuts and spending for a variety of programs, including health, education and job creation. Of immediate significance to employers, health plans and insurers are provisions that expand the rights of terminated employees under the Consolidated Omnibus Budget and Reconciliation Act of 1985, as amended (“COBRA”). This Alert summarizes the ARRA’s changes to COBRA, describes employers’ obligations under this new legislation and provides guidance on various notice requirements. http://www.elinfonet.com/newscount.php?popID=9649 Article: 9649 webmaster@elinfonet.com (Employment Law Information Network) Thu, 20 Mar 2008 00:00:00 EST President Obama on Feb. 17, 2009, signed into law the American Recovery and Reinvestment Act of 2009 (the “ARRA”). The ARRA expands the rights of terminated employees and their eligible beneficiaries under the Consolidated Omnibus Budget and Reconciliation Act of 1985, as amended (“COBRA”). Specifically, the COBRA provisions of the ARRA provide that 65 percent of an assistance eligible individual’s COBRA premiums will be subsidized by the U.S. government. While the employer or other plan sponsor is initially required to front the cost of the subsidy, the government will reimburse the entity by providing it with a credit against its payroll taxes and/or a refund. http://www.elinfonet.com/newscount.php?popID=9642 Article: 9642 webmaster@elinfonet.com (Employment Law Information Network) Fri, 10 Apr 2009 00:00:00 EST The American Recovery and Reinvestment Act of 2009 (the “ARRA”) expands the rights of assistance eligible individuals under the Consolidated Omnibus Budget and Reconciliation Act of 1985, as amended (“COBRA”), by subsidizing 65 percent of their COBRA premiums. On March 31, 2009, the Internal Revenue Service issued Notice 2009-27 (the “Notice”). The Notice, which consists of 58 “Q&As,” provides information on a wide-range of topics related to the ARRA, including what constitutes an “involuntary termination,” who qualifies as an “assistance eligible individual,” how to calculate the premium reduction, what type of coverage is eligible for the premium reduction, and what is considered the beginning and end of the premium reduction period. The Notice also provides additional information on the recapture of the COBRA premium subsidy, the extended election period, payments to insurers, and the application of the subsidy rules to comparable state continuation coverage programs. This Alert sets forth some of the guidance covered in the Notice. http://www.elinfonet.com/newscount.php?popID=9633 Article: 9633 webmaster@elinfonet.com (Employment Law Information Network) Wed, 11 Aug 2010 00:00:00 EST Generally, the Socal Security Act provides that individuals may enroll in Medicare Part B (which covers doctors visits and other outpatient services) when they reach age 65. If they fail to do so during a seven-month initial enrollment period surrounding their 65th birthday, they can enroll during an annual "general enrollment" period that occurs each January 1- March 31, with coverage becoming effective the following July1, though they will incur a penalty in the form of permanently higher Part B premiums (10% increase for each year of available coverage that is foregone). However, actively employed individuals who have employer-provided health coverage can postpone signing up for Medicare Part B until after age 65. When they lose the employer-provided coverage or terminate employment, whichever happens first, they are then provided an eight-month "special enrollment period" ("SEP") during which they can sign up for Medicare effective immediately and without penalty. http://www.elinfonet.com/newscount.php?popID=9627 Article: 9627 webmaster@elinfonet.com (Employment Law Information Network) Tue, 10 Aug 2010 00:00:00 EST The Department of Labor (the “DOL”) has issued three model notices for communicating the recent extension of the Federal COBRA subsidy. http://www.elinfonet.com/newscount.php?popID=9425 Article: 9425 webmaster@elinfonet.com (Employment Law Information Network) Mon, 21 Jun 2010 00:00:00 EST The American Recovery and Reinvestment Act provided a 65% COBRA premium subsidy to eligible individuals involuntarily terminated between September 1, 2008, and December 31, 2009. Congress later extended the subsidy three times; most recently for those involuntarily terminated on or before May 31, 2010. (For information regarding the original COBRA subsidy and the previous extensions, please see our archived E*Bulletins from April 2010, March 2010, January 2010, March 2009, and February 2009.) http://www.elinfonet.com/newscount.php?popID=9235 Article: 9235 webmaster@elinfonet.com (Employment Law Information Network) Tue, 04 May 2010 00:00:00 EST President Obama has signed legislation extending the COBRA premium subsidy to assist individuals who have lost their jobs since the previous COBRA subsidy expired March 31, 2010. http://www.elinfonet.com/newscount.php?popID=9232 Article: 9232 webmaster@elinfonet.com (Employment Law Information Network) Mon, 03 May 2010 00:00:00 EST On April 15, President Obama signed into law the Continuing Extension Act of 2010 (the "Act"), thereby extending for a third time the program that subsidizes continued health care coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (and similar state continuation coverage laws) ("COBRA") for involuntarily terminated employees. That program provides that certain employees whose employment is involuntarily terminated can continue health coverage under COBRA by paying only 35% of the ordinary COBRA premiums for up to fifteen months. The insurer, the employer or the health plan pays the remaining 65%, which is recovered from the federal government through a credit against payroll tax liabilities or through direct reimbursement. http://www.elinfonet.com/newscount.php?popID=9208 Article: 9208 webmaster@elinfonet.com (Employment Law Information Network) Mon, 26 Apr 2010 00:00:00 EST Extended now for the third time, the availability of the COBRA premium subsidy has been extended through May 31, 2010. Late on April 15, 2010, President Obama signed H.R. 4851, the Continuing Extension Act of 2010. Final passage in the House of Representatives (votes 289-112) and in the Senate (votes 59-38) ensured that several government programs would be extended, including the COBRA premium subsidy. http://www.elinfonet.com/newscount.php?popID=9203 Article: 9203 webmaster@elinfonet.com (Employment Law Information Network) Fri, 23 Apr 2010 00:00:00 EST Last night, President Obama signed the Continuing Extension Act of 2010 (Act). The Act once again extends the eligibility period during which an involuntarily terminated individual can qualify for the COBRA subsidy originally created through the American Recovery and Reinvestment Act of 2009 (ARRA). The period during which an individual could qualify for the subsidy was originally set to expire on December 31, 2009, but was extended by the Defense Appropriations Act of 2010 until February 28, 2010, and extended again by the Temporary Extension Act of 2010 until March 31, 2010. The Act further extends the period during which an involuntarily terminated individual could qualify for the COBRA subsidy until May 31, 2010.