Showing posts with label cobra. Show all posts
Showing posts with label cobra. Show all posts
More Employment Law from the Defense Appropriations Act
Yep, the recent extension of the discount on COBRA premiums is part of our national defense effort. The 2010 Defense Department Appropriations Act contained an extension of the COBRA premium discount (enacted in Feb. 2009 as part of the ARRA stimulus bill) through February 28, 2010. A US DOL announcement regarding the extension is here.
Small Employers Alert: AB 23 - Cal COBRA Amendment
Small employers - take note! Governor Schwarzenegger signed AB 23, which implements the federal COBRA amendments contained in the "stimulus" bill (ARRA) and applies it to small employers covered by Cal-COBRA. This is an "urgency statute" that took effect on May 12, when it was signed into law.
Is your head spinning? Mine too. We're a small employer, too.
Well, the good news is most small employers rely on their health plans to distribute Cal-COBRA notices. So, just check with your insurers and brokers about this, mmmkay? I hope they will have this covered.
In case they don't - The new law will require notices to be sent to anyone having a qualifying event between 9/1/08 and May 12, 2009 ASAP (May 26, even). The notices explain eligibility for premium discounts under ARRA and give those who did not elect Cal-COBRA a second chance to do so.
The premium discounts offered to Cal-COBRA-eligible employees will result in tax deductions taken by the insurance companies in the case of Cal-COBRA. There will be verification of Cal-COBRA qualifying events to ensure those electing Cal-COBRA and seeking premium discounts are eligible under ARRA.
Incidentally, if you've missed all the hullabaloo about ARRA and the COBRA amendments, you can catch up here.
Is your head spinning? Mine too. We're a small employer, too.
Well, the good news is most small employers rely on their health plans to distribute Cal-COBRA notices. So, just check with your insurers and brokers about this, mmmkay? I hope they will have this covered.
In case they don't - The new law will require notices to be sent to anyone having a qualifying event between 9/1/08 and May 12, 2009 ASAP (May 26, even). The notices explain eligibility for premium discounts under ARRA and give those who did not elect Cal-COBRA a second chance to do so.
The premium discounts offered to Cal-COBRA-eligible employees will result in tax deductions taken by the insurance companies in the case of Cal-COBRA. There will be verification of Cal-COBRA qualifying events to ensure those electing Cal-COBRA and seeking premium discounts are eligible under ARRA.
Incidentally, if you've missed all the hullabaloo about ARRA and the COBRA amendments, you can catch up here.
New COBRA Notices Available
Did You Read the "Stimulus" Bill?
What employment law changes are included in the stimulus bill? Law firms are starting to pick over the new law, signed on February 17, 2009.
A number of employment law firms' newsletters report there is a big change to COBRA. To summarize, under the new law, certain employees fired / laid off employees from September 2008 until December 2009 will pay a discounted COBRA premium, which employers apparently will recover as a tax credit. The provision is available only to individuals earning less than $125,000 and married couples with incomes under $250,000. So, that will be easy for employers to administer. Not. I smell full employment for benefits administrators. See? Job creation!
What else is in the "American Recovery and Reinvestment Act" to stimulate employers? We'll find out in the coming days. If you can't wait, or you want to help your representative or Senator understand what s/he voted for, you can read the entire new law here. Just hit "control-F" and search for "COBRA" or "Title III," addressing the COBRA premium discount.
DGV
A number of employment law firms' newsletters report there is a big change to COBRA. To summarize, under the new law, certain employees fired / laid off employees from September 2008 until December 2009 will pay a discounted COBRA premium, which employers apparently will recover as a tax credit. The provision is available only to individuals earning less than $125,000 and married couples with incomes under $250,000. So, that will be easy for employers to administer. Not. I smell full employment for benefits administrators. See? Job creation!
What else is in the "American Recovery and Reinvestment Act" to stimulate employers? We'll find out in the coming days. If you can't wait, or you want to help your representative or Senator understand what s/he voted for, you can read the entire new law here. Just hit "control-F" and search for "COBRA" or "Title III," addressing the COBRA premium discount.
DGV
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