31. August 2011 16:16
Today marks the expiration of the federal subsidy covering 65 percent of the cost of COBRA premiums - a program implemented in 2009 under ARRA. As you know, employees who were involuntarily terminated between Sept. 1, 2008 and May 31, 2010 were eligible for the subsidy. Enrollment in the program ended in May 2010 but extensions stretched the subsidies out for 15 months. Although legislation to extend the eligibility beyond May 31, 2010 was proposed, it never passed.
Since the subsidies covered 15 months of premiums, those who were laid off in May 2010 (the last month of eligibility for premium assistance) and still have COBRA will pay the full cost of coverage for at least three months starting in September.
Click here to read the set of FAQs issued Tuesday by the DOL to address the subsidy expiration.
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COBRA
8. July 2011 14:55
The IRS has finalized regulations to allow Form 8928 filers to obtain an automatic 6-month extension for filing the return. This form is used to report excise tax penalties for violations of COBRA, HIPAA and other group health plan mandates, as well as the Code’s requirements for comparable Archer MSA and HSA contributions.
The extension does not extend the time for payment of any tax associated that is due. Estimated excise taxes must be submitted by the return’s original due date and a separate Form 7004 must be submitted in order to obtain the automatic extension.
Click here to read more.
6. January 2011 12:04
The President signed the Omnibus Trade Act of 2010 which extends the Trade Adjustment Assistance (TAA) program for six weeks (through Feb. 12, 2011). The Act consequently extends the 80% Health Coverage Tax Credit (HCTC) for the health insurance premiums of certain eligible individuals and their qualifying family members for eligible coverage months beginning before Feb. 13, 2011. The tax credit is available to those eligible under the TAA and and Alternative Trade Adjustment Assistance (ATAA) programs (which assist individuals who have become unemployed as a result of increased imports from, or shifts in production to, foreign countries), and retirees receiving PBGC pension benefits, who have lost their employer-sponsored health coverage.
The HCTC applies in limited circumstances and should not be confused with the 65% COBRA premium subsidy under ARRA, which was not extended by this Omnibus Trade Act.
Click here for more information.
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COBRA
30. August 2010 16:20
The DOL Employee Benefits Security Administration has updated its COBRA web page with a fact sheet and FAQs on maintaining health coverage after the COBRA premium reduction ends.
Click here to view the fact sheet.
Click here to view the FAQs.
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COBRA
30. August 2010 16:09
As you know, the COBRA premium subsidy ended May 31, leaving those who were laid off after June 1 scrambling to find affordable health insurance. Laid-off workers who started on COBRA before May 31 can still receive the aid, but those who have exhausted the 15-month subsidy and those who are newly unemployed are not eligible.
The outlook for another subsidy renewal is up in the air. The Unemployment Compensation Extension Act of 2010 signed by President Obama on July 22, 2010, did not extend the COBRA premium reduction and support is lacking in Congress because of the cost to fund the premium assistance. Sen. Sherrod Brown (D-Ohio) and Sen. Robert Casey (D-Pa.) introduced a bill to reinstate the subsidy and pay for it by eliminating a tax break on annuity trusts. The proposal would again be retroactive for those who lost their jobs since June 1 and would extend the subsidy for six months instead of the 15 months.
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COBRA
22. July 2010 14:24
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1. June 2010 10:52
The Senate adjourned for Memorial Day recess without passing an extension of the COBRA premium subsidies. With the lapse of extension, employees who are laid off after May 31 will not be eligible for the subsidy. The House and Senate will return next week and take up the measure, possibly extending the subsidies retroactively.
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COBRA
29. April 2010 09:27
The Department of Labor has updated the model notices to help plans and employers comply with the new requirements for the Continuing Extension Act of 2010. The CEA mandates that plans notify certain current and former participants and beneficiaries about the COBRA premium reduction.
The following are available:
- Model Updated General Notice
- Model Notice of New Election Period
- Model Supplemental Information Notice
- Model Notice of Extended Election Period
- Model Updated Alternative Notice
Click here to view the notices.
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COBRA
19. April 2010 09:45
The Department of Labor has updated the COBRA Web site to reflect the Continuing Extension Act of 2010 and the Patient Protection and Affordable Care Act of 2010.
Click here to view the news statement.
Click here to view the fact sheet.
Click here to view the FAQs.
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COBRA
16. April 2010 14:38
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COBRA
Disclaimer: The views and opinions on this blog are those of the author. Nothing contained in this weblog is intended as legal advice. This weblog was created to provide general information, opinions of the author and general musings. Accessing this website is not a consultation for legal advice or services and this weblog does not create an attorney-client relationship.
