In summary new federal regulations will:
+ Allow individuals, laid off September 1st or after, to receive COBRA or Conn mini COBRA coverage for 35% of the normal rate.
+ Mean individuals enrolled in the new COBRA option will make their 35% payment to their former employer.
+ Enable COBRA employers, 20 or more employees, to be reimbursed for their 65% of the premium by taking a deduction from their next payroll tax payment.
+ The reimbursement for individuals enrolled in Conn mini COBRA will be done by the employers medical insurance company.
Some frequent questions:
+ How long can coverage for 35% be obtained? Nine months.
+ When can an individual start to receive coverage for 35%? March 1, 2009.
+ What if the laid off employee did not elect coverage when it was offered? They will receive a new notice of eligibility to elect coverage.
More details will be released soon by the Department of Labor.
Sunday, March 01, 2009
Employees laid off Sept.1st or after can receive COBRA & mini COBRA coverage for 35% of the rate.
Posted by John C Parker, RHU, LTCP at Sunday, March 01, 2009
Subscribe to: Post Comments (Atom)
Post a Comment