On March 3, 2010, President Obama signed the Temporary Extension Act of 2010 (.pdf) into law. The Act provides for the continuation of the extended unemployment compensation benefit program and the availability of the COBRA premium subsidy, which expired February 28, 2010. The COBRA premium assistance program was extended to allow those involuntarily terminated through
PA Department of Insurance Provides Mini-COBRA Guidance
Pennsylvania’s Mini-COBRA law became effective July 10, 2009. The law provides COBRA-like medical insurance continuation to employees who work for smaller business not covered by the federal law. The Department of Insurance clarified some of the coverage issues and provided a model notice for covered businesses to provide to employees. Employees who elect Mini-COBRA may…
Pennsylvania Enacts “Mini-COBRA” requiring Insurers to offer Continuation of Health Coverage Options for Employees of Small Businesses
Effective July 10, 2009, medical insurers covering small employers in Pennsylvania will be required to offer COBRA-like continuation coverage to qualified employees and their eligible dependents. The new law covers small employers who have between two and 19 employees on a typical business day during the preceding calendar year.
The so-called mini-COBRA coverage expands on the…
Important IRS clarification of COBRA Subsidy Provisions
On March 31, 2009, the IRS issued a notice relating to premium assistance for COBRA continuation coverage under the American Recovery and Reinvestment Act of 2009 (ARRA). Notice 2009-27 contains many helpful clarifications on the following topics:
- INVOLUNTARY TERMINATION
- ASSISTANCE ELIGIBLE INDIVIDUAL
- CALCULATION OF PREMIUM REDUCTION
- COVERAGE ELIGIBLE FOR PREMIUM REDUCTION
- RECAPTURE OF PREMIUM ASSISTANCE
New COBRA Model Notice for ARRA Compliance Published by DOL
The Department of Labor Published Model Cobra Notices implementing the provisions of the American Recovery and Reinvestment Act of 2009.
Individuals eligible for the special COBRA election period described above also must receive a notice informing them of this opportunity. This notice must be provided within 60 days following February 17, 2009. Plan administrators must provide…
IRS Releases Information for Employers to Claim COBRA Assistance Credit on Payroll Tax Form
On February 26, 2009, the Internal Revenue Service released detailed information that will help employers claim credit for the COBRA medical premiums they pay for their former employees.
Under the new law, eligible former employees, enrolled in their employer’s health plan at the time they lost their jobs, are required to pay only 35 percent…
Premium Assistance for COBRA Benefits a part of Stimulus Legislation
The American Recovery and Reinvestment Act has passed both the House and Senate and awaits the President’s signature. The substance of the Act as it relates to COBRA continuation subsidies is as follows:
COBRA Subsidy: Eligible Employees who are involuntarily separated from employment can receive a 65% subsidy toward COBRA premiums for up to 9…