Statement by the Secretary of Labor Hilda L. Solis on COBRA
Friday, Mar 20,2009, 2:02:16 PM Click:
Copyright: PR Newswire
Source: PR Newswire
Wordcount: 3479
WASHINGTON, March 19 / PRNewswire-USNewswire / - Secretary of Labor Hilda L. Solis today issued the following statement regarding the Consolidated Omnibus Budget Reconciliation Act (COBRA) and reducing the premiums as part of the American and Reinvestment Act (ARRA)
"America, workers and employers are more productive in the world. With labor and capital markets in financial stress, the Obama administration is working to provide relief to American families. In February, the President signed into law the American recovery and Reinvestment Act to create jobs, provide training opportunities for new jobs, extend unemployment benefits and help relieve the burden of health care.
"These programs are vital to the well-being of people who lost their jobs. At this stage, the federal government begins to implement the right to respond to some of the basic needs of its citizens.
"The ARRA provides a subsidy of 65 per cent tax for the cost of health benefits, making them more affordable for the unemployed and their families. Millions of people, including those denied coverage by the employer under COBRA will be eligible to receive a subsidy on premiums of up to nine months.
"Today, the Department of Labor publishes more information to help the public understand how the program works and how they can benefit from the grant for the continuation of private health coverage, state and federal programs. The model that we publish enable employers to quickly clarify for former employees and their families how to take advantage of COBRA coverage and the subsidy.
"This administration is committed to working Americans so they can re-build the financial fabric of their lives. And the Ministry of Labor is working quickly to make it happen."
Additional information is available at www.dol.gov / COBRA.
U.S. Department of Labor releases are accessible on the Internet at www. Dol.gov. The information contained in this release will be available in alternative formats (large print, Braille, audiotape or disc) from the coast to the desktop application. Please specify when making your request at 202-693-7828 or 202-693-7755 TTY. The Ministry of Labor is committed to providing America with employers and employees easy access to information on how to comply with its laws and regulations. For more information, please visit www.dol.gov / compliance.
FAQs About COBRA premium reduction under ARRA
General Information
Q1: I heard that the stimulus package signed by the President included a temporary reduction of COBRA premium. I would like more information.
The promotion, which was enacted as the American and Reinvestment Act of 2009 (ARRA) temporarily reduced the premium for COBRA coverage to eligible persons. COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) allows some people to extend employer-provided group health coverage, should they lose coverage because of certain events such as divorce or job loss .
Persons who are eligible for COBRA coverage because of their own or a family member of the involuntary termination of employment that occurred from 1 September 2008 to December 31, 2009, and who elect COBRA May be eligible to pay a reduced premium. Eligible persons pay only 35% of the full COBRA premium for their plans for a maximum of 9 months. This premium reduction is generally available for the continuation of coverage under the Federal COBRA provisions, as well as group health insurance to cover maintenance of state laws.
If you were offered Federal COBRA continuation coverage as a result of an involuntary termination of employment which occurred at any time from 1 September 2008 to February 16, 2009, and refused to take at this time is COBRA, COBRA or elected, and later abandoned it, May you have a new opportunity to elect COBRA coverage and pay a reduced premium.
Q2: What are the plans to reduce the premium applicable to?
The COBRA premium reduction applies to all health plans group sponsored by private employers or trade unions (trade unions), subject to the rules under the COBRA Employee Retirement Income Security Act of 1974 ( ERISA). They also apply to plans sponsored by the State or local authorities subject to prosecution under the provisions of the Act on the Service of Public Health, and plans in the Federal Employee Health Benefits Program (FEHBP). The premium reduction is also available for group health insurance which is required by State law to provide comparable coverage to continue (as the "mini-COBRA").
Q3: How do I know if I am eligible to receive COBRA premium reduction?
ARRA makes premium reduction for "assistance to eligible persons. Assistance eligible individual is a qualified COBRA beneficiary who meets the following conditions:
- Are eligible for COBRA continuation coverage at any time during the period from 1 September 2008 to December 31, 2009 - Elect COBRA coverage (at the first offer or during the election period provided by the additional ARRA), and - The COBRA election opportunity refers to an involuntary termination of employment that occurred at any time from 1 September 2008 to December 31, 2009.
However, if you are eligible for other group health coverage (eg through a new plan of the employer of a spouse or a plane) or illness, you do not qualify for reduced premiums.
In addition, election of the premium reduction, you disqualify for the tax credit for health coverage, which could be more interesting to you that the premium reduction. In addition, some high-income people in May to repay the amount of the premium reduction through an increase in their income tax. See FAQ # 9 below for more information.
Note: If the employee of the termination was for misconduct, the employee and any expenses in general are not eligible for COBRA or reduction of premiums.
Q4: In order to be eligible for assistance, the person must have made the cover of the health plan of the group at the time of the involuntary termination of employment?
In general, yes. The person must have coverage at the time of the involuntary termination of employment. This qualification must be held at any time from 1 September 2008 to December 31, 2009, and the person must be eligible for COBRA coverage at any time during that period. Of course, infants and children who are adopted or placed for adoption after the qualification is also considered as qualified and therefore the beneficiaries who have the same rights as someone who has coverage at the time of qualification.
Q5: If I am eligible for the premium reduction, how long will it last?
Your premium reduction for a period of 9 months. It will end sooner if:
1. You are entitled to Medicare or another group health plan (for example, a plan supported by a new employer or an employer of a spouse), ** or 2. You arrive at the end of your period of COBRA coverage.
If you continue your COBRA coverage after the premium reduction, you May have to pay the full amount of the premium. Do not do your May result in loss of COBRA coverage. Contact your administrator for more information.
** People pay reduced premiums COBRA must notify their plans if they become eligible for coverage under another group health plan or illness. Not doing so can result in a penalty tax.
Q6: Who is eligible for a second chance to elect COBRA coverage?
Qualified qualifying beneficiaries whose case is an involuntary termination of employment during the period from 1 September 2008 to February 16, 2009, which did not elect COBRA when it was offered for the first time or who have to elect COBRA, but are not enrolled (for example, those who declined COBRA coverage because of their inability to continue paying the premium) has a new opportunity second election. Persons eligible for the extension of COBRA election period must receive a notice informing them of this possibility. This notice must be provided by 18 April 2009, and individuals have 60 days after the notice is expected to elect COBRA. However, the election period must not extend the period of COBRA continuation coverage beyond the maximum (usually 18 months after the involuntary termination of employment). COBRA coverage elected in this election period begins with the first coverage period beginning on or after February 17, 2009.
According to ARRA, the election period, the opportunity should not necessarily be provided in respect of the State maintaining coverage that is provided under state insurance law. A State may adopt measures, however, for a period of election in the ongoing coverage for persons involuntarily end of the 1 September 2008 to 16 February 2009 for their claims to assistance based on involuntary termination during this period. For more information about rights and responsibilities with regard to the election period under the legislation of the State, the State with your insurance commissioner's office or the CMS www.cms.hhs.gov / COBRAContinuationofCov.
Q7: Does any change ARRA State program requirements or periods of time for the election of continuation coverage?
ARRA No. does not change the requirement of a further hedging program. ARRA does that assistance to eligible people who choose to continue the insurance coverage of the State the right to receive a premium reduction for a maximum of 9 months. It also assists eligible individuals to move to other coverage offered to active employees, if permitted by the plan provided that such coverage is not more expensive than the prior coverage.
Premiums
Q8: How can I request a premium reduction?
If you have been working on health in terms of the last day of employment, the plan should send you a notification of your eligibility to elect COBRA and receive reduced premiums. The notice must include all forms necessary for registration. You May also want to contact your plan to ask about the benefit of reduced premiums.
Q9: Are there income limits for the reduction of premiums?
If you win the amount for the year is over $ 125,000 (or $ 250,000 for married couples filing a joint federal income tax return), you May have to repay all or part of the decline in the premium through an increase in your taxes for the year. If you think your income May exceed the amounts above, you want May to consider renouncing your right to reduced premiums. For more information, consult your preparer or visit the IRS at www.irs.gov ARRA.
Q10: How is the premium of 65% of grants to get me?
You will not receive payment. Assistance to eligible persons are responsible for paying only 35% of the premium for COBRA coverage period. The remaining 65% of the premium is paid directly to the employer, the plan administrator or insurance company through a tax credit on wages.
Q11: Does the 35% I am required to pay all administrative costs of the plans are allowed to load or do I pay this fee?
If you are a person eligible for assistance, you must pay the amount that is 35% of what you would pay for your COBRA coverage, which already includes all administrative costs.
Q12: Who can claim the tax credit on wages?
The tax credit on wages May be claimed by: (1) a multi-health plan, (2) the employer to maintain a health plan of the group that is subject to federal COBRA coverage requirements, or is self-insured, or (3) an insurer providing coverage under a plan is not included in (1) or (2). Only that person is entitled to offset its charges by the amount of the grant. The tax credit is claimed in January 2009 on the revision of IRS Form 941, the employer quarterly federal tax return. If the credit amount is greater than the taxes due, the Secretary of the Treasury shall reimburse the person requesting the tax credit for the surplus in the same manner as if it were an overpayment of such taxes. For more information on credit and the tax provisions in the ARRA, visit the IRS website at http://www.irs.gov/newsroom/article/0,, id = 204,505.00. Html.
Notices
Q13: Does the ARRA impose new notice requirements?
Yes, plans and issuers are required to notify qualified beneficiaries with respect to the reduction of premiums and other information on their rights under the ARRA as follows:
- A general notice to all beneficiaries, whether they are currently enrolled in COBRA coverage or not, who are qualified during the period from 1 September 2008 to December 31, 2009. May this notice be provided separately or with the election COBRA COBRA Following a notice of qualification. - A notice of extension of the COBRA election period to any individual aid eligible (or anyone who would help if a person eligible for COBRA continuation coverage election was in force), who had a qualification at any time from September 1 2008 through 16 February 2009 and who either did not elect COBRA continuation coverage or have elected, but then abandoned COBRA. This notice must be provided within 60 days of February 17, 2009.
Unless amended by ARRA, opinions COBRA method and timing requirements continue to apply.
Under the programs, the issuer of the group health plan must provide notice to recipients of information on how to apply for reduced premiums. These notices must be provided within the time required by State law.
Q14: What information should include advice?
The notice shall include the following information:
- The forms necessary to establish eligibility for reduced premiums, - Details of the plan administrator or other person to maintain relevant information in connection with the reduction of premiums, - A description of the second period election (if applicable to the person) - A description of the requirement that the allowable aid notify the plan when he / she becomes eligible for coverage under another group health plan or illness and the penalty for failure to do so, - a description of the right to receive the premium reduction and the conditions of law and - if offered by the employer, a description of the opportunity to enroll in another option coverage under the plan.
Q15: Is the model of opinion?
Yes. The Department of Labor has developed model notices are available at www.dol.gov / COBRA.
Individual issues for displaced workers and their families
Q16: I was fired from my job in December. Is it an involuntary termination of employment?
Told not to return to work until further notice is a termination of employment for purposes of COBRA and the premium reduction ARRA provisions.
Q17: My health coverage was terminated when my employer stopped and fired all its employees. Can I get a premium for the reduction of health coverage of news?
The premium reduction is available to help qualified individuals pay for COBRA continuation health coverage. If there are more health plan, there is often no COBRA coverage available, unless another employer or a group health plan sponsors responsible for providing continuation coverage to you.
If you think that May or related employer is responsible to provide COBRA coverage, you may contact the employer directly or EBSA toll-free at 1.866.444.3272 to speak to a benefits counselor for assistance.
Q18: I am an aide who was eligible enrolled in COBRA coverage since December 2008. Will I receive a refund of 65% of all premiums that I have already paid?
The premium reduction No provisions apply only to premiums to cover periods starting on or after February 17, 2009. If you qualify for the reduction, but fully paid for COBRA coverage periods beginning on or after 17 February 2009, you must contact the plan administrator or the employer sponsoring the plan to discuss a credit with respect to future payments (or refunds in certain cases). See FAQ # 23 below for more information.
Q19: I am currently enrolled in COBRA continuation coverage, but I would switch to another option offered by the coverage of my former employer. Can I do?
Group health plans are allowed, but not required, to allow qualified beneficiaries to enroll in the coverage that is different from the coverage they had at the time of qualification. ARRA provides that changes in coverage will not be due to a person ineligible for the reduction of COBRA premiums, provided that:
- The premium for coverage is different from the same or less coverage the individual had at the time of qualification - Different coverage is also offered to active employees, and - Different coverage is not limited to dental, vision coverage, coverage advice, a flexible spending account or a medical clinic.
If the plan allows individuals to change coverage options, the plan is to enable people to notice of the possibility of change. Individuals have 90 days to choose to change their minds after the coverage is ensured.
Q20: Only part of my family, but elected COBRA coverage each of us were eligible. Can I register others and benefit from reduced premiums?
May each COBRA qualified beneficiary to elect COBRA coverage independently. Moreover, even if a family member did not elect COBRA coverage when eligible for the first, if the person would be eligible for individual assistance (except for its failure to elect at the front cover COBRA eligible or exception because he or she interrupted COBRA coverage before February 17, 2009) that the individual gets a second chance to register and qualify for reduced premiums. See Frequently Asked Questions 3 and 6 above for more information.
Q21: I received my COBRA election notice. Can I change my option of coverage from what I previously?
In general, COBRA coverage is the same coverage that the individual had at the time of the qualification. However, according to ARRA, the employer offers May Assistance to eligible individuals the opportunity to choose other coverage that is offered for active employees and not to have higher premiums that cover the at the time of the qualification. See FAQ # 19 for more information.
Q22: I have been offered COBRA through a qualification that was laid off on or after 1 September 2008, but I think I am also eligible for the tax credit for health care under the Trade Adjustment Act. What program can I receive benefits from?
The election of the premium reduction disqualify you for the tax credit for health coverage. If you qualify for the tax credit for health coverage, which could be more valuable than the premium reduction, you received a notice from the IRS.
If you have questions about these provisions, you May call the tax credit for health coverage Customer Contact Center toll free at 1-866-628-4282. TTD / TTY calls May call toll free at 1-866-626-4282. More information about the Trade Act is also available at www.doleta.gov / tradeact.
Q23: If an eligible person pays the full assistance of COBRA premiums and is later determined to be eligible for reduced premiums, which should be done with the plan too?
The plan (or other person to whom such payment is due) may apply the overpayment as a credit toward the payment of subsequent premiums as long as it is reasonable to believe that the credit can be used within 180 days overpayment. Otherwise, the overpayment shall be refunded to the person within 60 days of receipt.
Call
Q24: What can I do if my former employer, the group health plan refuses my request to reduce the premium?
If the plan determines that you do not qualify for reduced premiums, you can request an expedited review of the denial. The Department of Labor will handle calls related to private sector employers subject to ERISA plans of the COBRA provisions. The Department of Health and Human Services to manage calls federal, state, local communities and employees, and calls related to health insurance coverage provided pursuant to state laws continued coverage. Departments are required to take a decision on your appeal within 15 days after receipt of your application. [Note: Call the Department of Labor must be presented on a U.S. Department of Labor form. The form will soon be available at www.dol.gov / COBRA and can be completed online or by mail or fax as instructed.] If you think you have been wrongly denied eligibility for the premium reduction You May want to talk with Employee Benefits Security Administration at 1.866.444.3272 benefits before submitting this form.
More information
Q25: How can I get more information about my eligibility for COBRA or reduction of premiums?
Guidance and other information are available on the Department of Labor website at www. Dol.gov / COBRA. You can also call 1-866-444-3272 to speak with an Employee Benefits Security Administration benefits.
Information about the premium reduction ARRA provisions is also available from the IRS (visit www.irs.gov) and the Ministry of Health and Human Services (visit www.cms.hhs.gov / COBRAContinuationofCov) which, with the Department of Labor, share responsibility for COBRA and new requirements added by the ARRA.
SOURCE U. S. Department of Labor
CONTACT: Gloria Della of the U.S. Department of Labor, +1-202-693-8666
This is an information service of Thomson Business Intelligence Service © 2006. This content is only for your personal use, subject to the terms and conditions. No redistribution allowed.
Source: PR Newswire
Wordcount: 3479
WASHINGTON, March 19 / PRNewswire-USNewswire / - Secretary of Labor Hilda L. Solis today issued the following statement regarding the Consolidated Omnibus Budget Reconciliation Act (COBRA) and reducing the premiums as part of the American and Reinvestment Act (ARRA)
"America, workers and employers are more productive in the world. With labor and capital markets in financial stress, the Obama administration is working to provide relief to American families. In February, the President signed into law the American recovery and Reinvestment Act to create jobs, provide training opportunities for new jobs, extend unemployment benefits and help relieve the burden of health care.
"These programs are vital to the well-being of people who lost their jobs. At this stage, the federal government begins to implement the right to respond to some of the basic needs of its citizens.
"The ARRA provides a subsidy of 65 per cent tax for the cost of health benefits, making them more affordable for the unemployed and their families. Millions of people, including those denied coverage by the employer under COBRA will be eligible to receive a subsidy on premiums of up to nine months.
"Today, the Department of Labor publishes more information to help the public understand how the program works and how they can benefit from the grant for the continuation of private health coverage, state and federal programs. The model that we publish enable employers to quickly clarify for former employees and their families how to take advantage of COBRA coverage and the subsidy.
"This administration is committed to working Americans so they can re-build the financial fabric of their lives. And the Ministry of Labor is working quickly to make it happen."
Additional information is available at www.dol.gov / COBRA.
U.S. Department of Labor releases are accessible on the Internet at www. Dol.gov. The information contained in this release will be available in alternative formats (large print, Braille, audiotape or disc) from the coast to the desktop application. Please specify when making your request at 202-693-7828 or 202-693-7755 TTY. The Ministry of Labor is committed to providing America with employers and employees easy access to information on how to comply with its laws and regulations. For more information, please visit www.dol.gov / compliance.
FAQs About COBRA premium reduction under ARRA
General Information
Q1: I heard that the stimulus package signed by the President included a temporary reduction of COBRA premium. I would like more information.
The promotion, which was enacted as the American and Reinvestment Act of 2009 (ARRA) temporarily reduced the premium for COBRA coverage to eligible persons. COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) allows some people to extend employer-provided group health coverage, should they lose coverage because of certain events such as divorce or job loss .
Persons who are eligible for COBRA coverage because of their own or a family member of the involuntary termination of employment that occurred from 1 September 2008 to December 31, 2009, and who elect COBRA May be eligible to pay a reduced premium. Eligible persons pay only 35% of the full COBRA premium for their plans for a maximum of 9 months. This premium reduction is generally available for the continuation of coverage under the Federal COBRA provisions, as well as group health insurance to cover maintenance of state laws.
If you were offered Federal COBRA continuation coverage as a result of an involuntary termination of employment which occurred at any time from 1 September 2008 to February 16, 2009, and refused to take at this time is COBRA, COBRA or elected, and later abandoned it, May you have a new opportunity to elect COBRA coverage and pay a reduced premium.
Q2: What are the plans to reduce the premium applicable to?
The COBRA premium reduction applies to all health plans group sponsored by private employers or trade unions (trade unions), subject to the rules under the COBRA Employee Retirement Income Security Act of 1974 ( ERISA). They also apply to plans sponsored by the State or local authorities subject to prosecution under the provisions of the Act on the Service of Public Health, and plans in the Federal Employee Health Benefits Program (FEHBP). The premium reduction is also available for group health insurance which is required by State law to provide comparable coverage to continue (as the "mini-COBRA").
Q3: How do I know if I am eligible to receive COBRA premium reduction?
ARRA makes premium reduction for "assistance to eligible persons. Assistance eligible individual is a qualified COBRA beneficiary who meets the following conditions:
- Are eligible for COBRA continuation coverage at any time during the period from 1 September 2008 to December 31, 2009 - Elect COBRA coverage (at the first offer or during the election period provided by the additional ARRA), and - The COBRA election opportunity refers to an involuntary termination of employment that occurred at any time from 1 September 2008 to December 31, 2009.
However, if you are eligible for other group health coverage (eg through a new plan of the employer of a spouse or a plane) or illness, you do not qualify for reduced premiums.
In addition, election of the premium reduction, you disqualify for the tax credit for health coverage, which could be more interesting to you that the premium reduction. In addition, some high-income people in May to repay the amount of the premium reduction through an increase in their income tax. See FAQ # 9 below for more information.
Note: If the employee of the termination was for misconduct, the employee and any expenses in general are not eligible for COBRA or reduction of premiums.
Q4: In order to be eligible for assistance, the person must have made the cover of the health plan of the group at the time of the involuntary termination of employment?
In general, yes. The person must have coverage at the time of the involuntary termination of employment. This qualification must be held at any time from 1 September 2008 to December 31, 2009, and the person must be eligible for COBRA coverage at any time during that period. Of course, infants and children who are adopted or placed for adoption after the qualification is also considered as qualified and therefore the beneficiaries who have the same rights as someone who has coverage at the time of qualification.
Q5: If I am eligible for the premium reduction, how long will it last?
Your premium reduction for a period of 9 months. It will end sooner if:
1. You are entitled to Medicare or another group health plan (for example, a plan supported by a new employer or an employer of a spouse), ** or 2. You arrive at the end of your period of COBRA coverage.
If you continue your COBRA coverage after the premium reduction, you May have to pay the full amount of the premium. Do not do your May result in loss of COBRA coverage. Contact your administrator for more information.
** People pay reduced premiums COBRA must notify their plans if they become eligible for coverage under another group health plan or illness. Not doing so can result in a penalty tax.
Q6: Who is eligible for a second chance to elect COBRA coverage?
Qualified qualifying beneficiaries whose case is an involuntary termination of employment during the period from 1 September 2008 to February 16, 2009, which did not elect COBRA when it was offered for the first time or who have to elect COBRA, but are not enrolled (for example, those who declined COBRA coverage because of their inability to continue paying the premium) has a new opportunity second election. Persons eligible for the extension of COBRA election period must receive a notice informing them of this possibility. This notice must be provided by 18 April 2009, and individuals have 60 days after the notice is expected to elect COBRA. However, the election period must not extend the period of COBRA continuation coverage beyond the maximum (usually 18 months after the involuntary termination of employment). COBRA coverage elected in this election period begins with the first coverage period beginning on or after February 17, 2009.
According to ARRA, the election period, the opportunity should not necessarily be provided in respect of the State maintaining coverage that is provided under state insurance law. A State may adopt measures, however, for a period of election in the ongoing coverage for persons involuntarily end of the 1 September 2008 to 16 February 2009 for their claims to assistance based on involuntary termination during this period. For more information about rights and responsibilities with regard to the election period under the legislation of the State, the State with your insurance commissioner's office or the CMS www.cms.hhs.gov / COBRAContinuationofCov.
Q7: Does any change ARRA State program requirements or periods of time for the election of continuation coverage?
ARRA No. does not change the requirement of a further hedging program. ARRA does that assistance to eligible people who choose to continue the insurance coverage of the State the right to receive a premium reduction for a maximum of 9 months. It also assists eligible individuals to move to other coverage offered to active employees, if permitted by the plan provided that such coverage is not more expensive than the prior coverage.
Premiums
Q8: How can I request a premium reduction?
If you have been working on health in terms of the last day of employment, the plan should send you a notification of your eligibility to elect COBRA and receive reduced premiums. The notice must include all forms necessary for registration. You May also want to contact your plan to ask about the benefit of reduced premiums.
Q9: Are there income limits for the reduction of premiums?
If you win the amount for the year is over $ 125,000 (or $ 250,000 for married couples filing a joint federal income tax return), you May have to repay all or part of the decline in the premium through an increase in your taxes for the year. If you think your income May exceed the amounts above, you want May to consider renouncing your right to reduced premiums. For more information, consult your preparer or visit the IRS at www.irs.gov ARRA.
Q10: How is the premium of 65% of grants to get me?
You will not receive payment. Assistance to eligible persons are responsible for paying only 35% of the premium for COBRA coverage period. The remaining 65% of the premium is paid directly to the employer, the plan administrator or insurance company through a tax credit on wages.
Q11: Does the 35% I am required to pay all administrative costs of the plans are allowed to load or do I pay this fee?
If you are a person eligible for assistance, you must pay the amount that is 35% of what you would pay for your COBRA coverage, which already includes all administrative costs.
Q12: Who can claim the tax credit on wages?
The tax credit on wages May be claimed by: (1) a multi-health plan, (2) the employer to maintain a health plan of the group that is subject to federal COBRA coverage requirements, or is self-insured, or (3) an insurer providing coverage under a plan is not included in (1) or (2). Only that person is entitled to offset its charges by the amount of the grant. The tax credit is claimed in January 2009 on the revision of IRS Form 941, the employer quarterly federal tax return. If the credit amount is greater than the taxes due, the Secretary of the Treasury shall reimburse the person requesting the tax credit for the surplus in the same manner as if it were an overpayment of such taxes. For more information on credit and the tax provisions in the ARRA, visit the IRS website at http://www.irs.gov/newsroom/article/0,, id = 204,505.00. Html.
Notices
Q13: Does the ARRA impose new notice requirements?
Yes, plans and issuers are required to notify qualified beneficiaries with respect to the reduction of premiums and other information on their rights under the ARRA as follows:
- A general notice to all beneficiaries, whether they are currently enrolled in COBRA coverage or not, who are qualified during the period from 1 September 2008 to December 31, 2009. May this notice be provided separately or with the election COBRA COBRA Following a notice of qualification. - A notice of extension of the COBRA election period to any individual aid eligible (or anyone who would help if a person eligible for COBRA continuation coverage election was in force), who had a qualification at any time from September 1 2008 through 16 February 2009 and who either did not elect COBRA continuation coverage or have elected, but then abandoned COBRA. This notice must be provided within 60 days of February 17, 2009.
Unless amended by ARRA, opinions COBRA method and timing requirements continue to apply.
Under the programs, the issuer of the group health plan must provide notice to recipients of information on how to apply for reduced premiums. These notices must be provided within the time required by State law.
Q14: What information should include advice?
The notice shall include the following information:
- The forms necessary to establish eligibility for reduced premiums, - Details of the plan administrator or other person to maintain relevant information in connection with the reduction of premiums, - A description of the second period election (if applicable to the person) - A description of the requirement that the allowable aid notify the plan when he / she becomes eligible for coverage under another group health plan or illness and the penalty for failure to do so, - a description of the right to receive the premium reduction and the conditions of law and - if offered by the employer, a description of the opportunity to enroll in another option coverage under the plan.
Q15: Is the model of opinion?
Yes. The Department of Labor has developed model notices are available at www.dol.gov / COBRA.
Individual issues for displaced workers and their families
Q16: I was fired from my job in December. Is it an involuntary termination of employment?
Told not to return to work until further notice is a termination of employment for purposes of COBRA and the premium reduction ARRA provisions.
Q17: My health coverage was terminated when my employer stopped and fired all its employees. Can I get a premium for the reduction of health coverage of news?
The premium reduction is available to help qualified individuals pay for COBRA continuation health coverage. If there are more health plan, there is often no COBRA coverage available, unless another employer or a group health plan sponsors responsible for providing continuation coverage to you.
If you think that May or related employer is responsible to provide COBRA coverage, you may contact the employer directly or EBSA toll-free at 1.866.444.3272 to speak to a benefits counselor for assistance.
Q18: I am an aide who was eligible enrolled in COBRA coverage since December 2008. Will I receive a refund of 65% of all premiums that I have already paid?
The premium reduction No provisions apply only to premiums to cover periods starting on or after February 17, 2009. If you qualify for the reduction, but fully paid for COBRA coverage periods beginning on or after 17 February 2009, you must contact the plan administrator or the employer sponsoring the plan to discuss a credit with respect to future payments (or refunds in certain cases). See FAQ # 23 below for more information.
Q19: I am currently enrolled in COBRA continuation coverage, but I would switch to another option offered by the coverage of my former employer. Can I do?
Group health plans are allowed, but not required, to allow qualified beneficiaries to enroll in the coverage that is different from the coverage they had at the time of qualification. ARRA provides that changes in coverage will not be due to a person ineligible for the reduction of COBRA premiums, provided that:
- The premium for coverage is different from the same or less coverage the individual had at the time of qualification - Different coverage is also offered to active employees, and - Different coverage is not limited to dental, vision coverage, coverage advice, a flexible spending account or a medical clinic.
If the plan allows individuals to change coverage options, the plan is to enable people to notice of the possibility of change. Individuals have 90 days to choose to change their minds after the coverage is ensured.
Q20: Only part of my family, but elected COBRA coverage each of us were eligible. Can I register others and benefit from reduced premiums?
May each COBRA qualified beneficiary to elect COBRA coverage independently. Moreover, even if a family member did not elect COBRA coverage when eligible for the first, if the person would be eligible for individual assistance (except for its failure to elect at the front cover COBRA eligible or exception because he or she interrupted COBRA coverage before February 17, 2009) that the individual gets a second chance to register and qualify for reduced premiums. See Frequently Asked Questions 3 and 6 above for more information.
Q21: I received my COBRA election notice. Can I change my option of coverage from what I previously?
In general, COBRA coverage is the same coverage that the individual had at the time of the qualification. However, according to ARRA, the employer offers May Assistance to eligible individuals the opportunity to choose other coverage that is offered for active employees and not to have higher premiums that cover the at the time of the qualification. See FAQ # 19 for more information.
Q22: I have been offered COBRA through a qualification that was laid off on or after 1 September 2008, but I think I am also eligible for the tax credit for health care under the Trade Adjustment Act. What program can I receive benefits from?
The election of the premium reduction disqualify you for the tax credit for health coverage. If you qualify for the tax credit for health coverage, which could be more valuable than the premium reduction, you received a notice from the IRS.
If you have questions about these provisions, you May call the tax credit for health coverage Customer Contact Center toll free at 1-866-628-4282. TTD / TTY calls May call toll free at 1-866-626-4282. More information about the Trade Act is also available at www.doleta.gov / tradeact.
Q23: If an eligible person pays the full assistance of COBRA premiums and is later determined to be eligible for reduced premiums, which should be done with the plan too?
The plan (or other person to whom such payment is due) may apply the overpayment as a credit toward the payment of subsequent premiums as long as it is reasonable to believe that the credit can be used within 180 days overpayment. Otherwise, the overpayment shall be refunded to the person within 60 days of receipt.
Call
Q24: What can I do if my former employer, the group health plan refuses my request to reduce the premium?
If the plan determines that you do not qualify for reduced premiums, you can request an expedited review of the denial. The Department of Labor will handle calls related to private sector employers subject to ERISA plans of the COBRA provisions. The Department of Health and Human Services to manage calls federal, state, local communities and employees, and calls related to health insurance coverage provided pursuant to state laws continued coverage. Departments are required to take a decision on your appeal within 15 days after receipt of your application. [Note: Call the Department of Labor must be presented on a U.S. Department of Labor form. The form will soon be available at www.dol.gov / COBRA and can be completed online or by mail or fax as instructed.] If you think you have been wrongly denied eligibility for the premium reduction You May want to talk with Employee Benefits Security Administration at 1.866.444.3272 benefits before submitting this form.
More information
Q25: How can I get more information about my eligibility for COBRA or reduction of premiums?
Guidance and other information are available on the Department of Labor website at www. Dol.gov / COBRA. You can also call 1-866-444-3272 to speak with an Employee Benefits Security Administration benefits.
Information about the premium reduction ARRA provisions is also available from the IRS (visit www.irs.gov) and the Ministry of Health and Human Services (visit www.cms.hhs.gov / COBRAContinuationofCov) which, with the Department of Labor, share responsibility for COBRA and new requirements added by the ARRA.
SOURCE U. S. Department of Labor
CONTACT: Gloria Della of the U.S. Department of Labor, +1-202-693-8666
This is an information service of Thomson Business Intelligence Service © 2006. This content is only for your personal use, subject to the terms and conditions. No redistribution allowed.
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