May 12, 2010

COBRA Subsidy Extended Again, With Maybe More Extensions to Come

Filed under: COBRA — Tags: , — Jane @ 12:13 pm

On April 15th the eligibility period for the federal COBRA premium subsidies, under the American Recovery and Reinvestment Act (ARRA), was extended again.  This extension provides COBRA premium subsidies for eligible individuals, who are involuntarily terminated from employment, through May 31, 2010.

The previous extension covered involuntary terminations through March 31, 2010.   The latest extension provides retroactive eligibility for those terminated after that date. Employers who sent basic COBRA notices (without subsidy information) to qualified beneficiaries who became eligible for COBRA after March 31, 2010

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December 23, 2009

HR Fact Friday: Congress Approves COBRA Premium Subsidy Extension

Filed under: General HR Buzz — Tags: , , , , , , — Paul @ 8:31 am

The U.S. government gave thousands of unemployed workers an early Christmas gift when the Senate, in a rare session Saturday, December 19, approved a military spending bill that would extend federal COBRA health insurance premium subsidies for the unemployed.

H.R. 3326, which the House approved this week, cleared the Senate on an 88-10 vote.

President Barack Obama signed the bill Monday, December 21. 

The bill would extend the nine-month, 65 percent premium federal subsidy by six months. The change would apply to those who are involuntarily terminated through February 28, 2010.

Under current law, employees who lose their jobs after December 31 are ineligible for the subsidy.

The legislation also would provide another six months of subsidized coverage for beneficiaries whose nine-month COBRA premium subsidy has run out.

In addition, the legislation would give beneficiaries whose subsidy expired and who didn’t pay the full premium the opportunity to receive retroactive coverage. For example, a beneficiary whose nine months of subsidized coverage ran out November 30 and who didn’t pay the unsubsidized premium for December could pay his or her 35 percent share in January and receive COBRA coverage for December.

The legislation would require employers to notify current and future COBRA beneficiaries of the new 15-month premium subsidy.

The fate of the legislation has been followed closely by terminated workers—eager to know whether the subsidy will be extended—as well as employers who need to tell beneficiaries the COBRA premium they should pay.

The legislation makes clear that employers can offset future COBRA premiums or issue refund checks for beneficiaries who overpaid their COBRA premium. That could happen if a beneficiary whose subsidy ran out in November paid the full premium rather than the 35 percent share in December.

Source: workforce.com, Jerry Geisel

p.s. Yes I know today is not Friday . . . because Christmas Day is on Friday I am posting this a bit early. Merry Christmas! PH

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August 21, 2009

HR Fact Friday: COBRA Enrollment Doubles After Launch of Subsidy Program

Filed under: COBRA — Tags: , , , , , — Paul @ 6:54 am

Enrollments in COBRA (health continuation coverage) rose from less than 20% to nearly 40%  since the U.S. government enacted a new subsidy program, according to a report by Hewitt Associates, a consulting firm.

Signed into law in February 2009, the American Recovery and Reinvestment Act of 2009 (ARRA) provides for a 65% subsidy for COBRA continuation premiums for up to 9 months for workers who have been involuntarily terminated. To qualify for the subsidy, individuals must have a qualifying event for COBRA coverage that is the employee’s involuntary termination during the period beginning September 1, 2008 and ending December 31, 2009.

Hewitt looked at COBRA enrollment activity for 200 large employers both before and after the enactment of the program. From March 2009 to June 2009, monthly COBRA enrollment rates for Americans eligible for the subsidy averaged 38%, up from 19% for the period of September 2008 through February 2009.

Hewitt estimates that without the subsidy, the average worker would spend $8,800 a year in COBRA healthcare costs. With the subsidy, the average worker would spend about $3,000 a year.

Source: HR.BLR.com 8/19/2009

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July 13, 2009

Despite California Supreme Court Ruling Domestic Partners Retain Workplace Rights

Filed under: General HR Buzz,Insurance — Tags: , , , , — Jane @ 9:27 am

The California Supreme Court’s recent ruling upheld Proposition 8, which denies same sex couples the right to marry.  However that ruling does not affect registered domestic partners’ state workplace rights which are quite similar to those of heterosexual couples.

The California Domestic Partner Rights and Responsibilities Act provides that registered domestic partners “have the same rights, protections, and benefits provided to married couples.”   Therefore such same sex couples would be entitled to rights under California’s family leave law, paid family disability leave, kin care, and discrimination laws.

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June 24, 2009

Employment Lawsuits: Can Managers be Personally Sued?

Filed under: Legal Issues — Tags: , , , — Jane @ 1:07 pm

Managers, HR staff, and business owners are well aware that their organizations can be sued by employees, applicants, and ex-employees for a variety of reasons from discrimination, to overtime violations to safety issues.  But if you are a manager can you be sued as an individual as well?

Yes, You Can Be Personally Liable in Some Situations

  1. Discrimination Law
    The good news is that the majority of federal Circuit Courts of Appeal have found that there is no personal liability in discrimination cases brought under Title VII (e.g., race, sex, religion, etc.), The Age Discrimination in Employment Act, and the Americans with Disabilities Act.  The statutes are similar and the definition of “employer” under each of them is not interpreted as intended to apply to individuals.

    The bad news is that many state courts have found individual liability under state discrimination laws.  State law claims are typically included with federal claims.  Also, public sector managers may be liable under Section 1983 of the Civil Rights Act of 1871.

  2. Fair Labor Standards Act
    Managers can be individually liable under the FLSA as that statute defines an employer as “any person acting directly or indirectly in the interest of an employer in relation to an employee.”   The Equal Pay Act, which is part of the FLSA, provides for similar liability.  FLSA lawsuits (especially class actions) have spiked recently and are an increasing source of risk for employers generally.

  3. Family and Medical Leave Act
    The FMLA is based on the FLSA.  Consequently, in the majority of the courts that have examined the issue, personal liability of managers has been found.  Possible liability under the FMLA might be particularly troubling, given the complexity of the FMLA and how commonly managers as well as HR people are involved in FMLA actions.

  4. COBRA, ERISA & HIPAA
    Both COBRA and ERISA impose individual liability on those who act as plan administrators. Liability for actions under HIPAA may also exist.

  5. State Common Law Claims
    State common law claims, based on case law not statute, can be another source of personal liability.  They can include such things as wrongful termination, intention/infliction of emotional distress, defamation or invasion of privacy.

  6. Criminal Liability
    Going through the trauma of being named in a lawsuit and facing possible financial penalties are bad enough, but could you really go to the slammer or face other criminal penalties?   While certainly not a common occurrence it is possible that managers could be subject to criminal liability in certain circumstances.  Some examples could include: charges of obstruction of justice (e.g., destroying documents or making false statements), OSHA violations, or immigration related charges.

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March 19, 2009

DOL Publishes Model Notices for COBRA Subsidy

Filed under: COBRA — Tags: , , — Jane @ 2:43 pm

The Department of Labor has just published Model Notices that can be used to help comply with the new COBRA subsidy requirements.  They can be found at:  http://www.dol.gov/ebsa/COBRAmodelnotice.html.    You’ll notice that there are several notices available to be used depending upon the circumstances.  Good luck navigating through them and figuring out what to do.

You’ll remember that the American Recovery and Reinvestment Act, signed on February 17th, has increased  employers’ COBRA obligations  significantly.  Additionally, very small employers not subject to the federal law, but who have comparable state “mini-COBRAs,” are also in for some big changes.  The Act of 2009 requires immediate attention by most employers.

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February 19, 2009

COBRA Subsidy: Requires Immediate Action!!

Filed under: COBRA — Tags: , , , , — Jane @ 6:00 am

The American Recovery and Reinvestment Act of 2009, signed on February 17th, (the massive federal“stimulus” legislation) includes an important provision that affects most employers and requires immediate attention.  The new law will provide for a 65% monthly COBRA premium subsidy for most employees who were involuntarily terminated between September 1, 2008 and December 31, 2009. While the intent of the law is to assist employees who were terminated in reductions in force, it appears that nearly all involuntarily terminated employees and their dependents (qualified “assistance eligible individuals”) may qualify for the subsidy.  The subsidy may extend up to 9 months and applies to medical, vision and dental benefits.  It applies to nearly all employers with group health plans, regardless of whether they are subject to COBRA’s continuation rules. That includes private and government employers subject to COBRA and some smaller employers that may be subject to state “mini-COBRA” laws.  “Assistance eligible individuals”  are qualified for subsidy payments effective at the first period of coverage, beginning on or after the bill was signed into law (February 17th).   Practically, for most employers, that date is March 1st . 

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