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Issue: # 34 April 30, 2009
abg group photo 2009
Dear :
 
Special Announcement Newsletter Regarding Mini Cobra Employers (less than 20 employees)
 
As you all know, we have been working very hard to update our clients on the latest Cobra developments.  Most recently, we have provided the sample disclosure letters for your use.  The deadline for employers to notify those involuntarily laid off from September 1st, 2008, through February 17th, 2009, was April 18th, 2009.  
 
Late last week we received new information from Tufts, Blue Cross,  Harvard Pilgrim and Fallon concerning a decision by the Commonwealth of Massachusetts regarding employers with less than 20 employees, who are subject to Mini-COBRA.
 
The Commonwealth of Massachusetts has decided that Mini-Cobra employers may not give employees a 2nd chance to re-enroll in Cobra and take advantage of the subsidy.    In comparison, the Insurance Commissioner in New Hampshire will allow Mini-COBRA employers to offer the 2nd chance. 
 
This only applies to those employees involuntarily terminated between September 1, 2008 thru February 17th, 2009.  The subsidy, however, will still apply on a GO FORWARD BASIS for Mini Cobra employers.  The second chance is available for employers with 20 or more employees.  By now, you should all have received more detailed information from your health carrier.
 
We hope you find these newsletters to be helpful.  You may also access archived newsletters on our website to refer back to previous topics.  If you know anyone who may find this information of interest, please forward the newsletter (there is a link on the bottom), and they can subscribe themselves. We would appreciate the referral.
 
If you have any questions email Bill or Vanessa.  To learn more about Advantage Benefits click here.  Please give us your feedback.
 
Sincerely,
 

Bill Randell, CLU, CHFC             Vanessa Costa, CLU,CHFC
Advantage Benefits Group, Inc.
 
Questions From Employers
Hard To get Straight Answers 
Cobra Administrators
 

The feedback & questions from our clients is still coming in daily. There are lots of good questions and sometimes we do not have the answers.  It is important to note that concrete answers may be hard to find.  Carriers typically respond to our questions by directing employers  to "seek legal Counsel" and will not to commit to an answer.

 
So our suggestion is to use common sense, act in a consistent manner and most importantly avoid anything that appears to be discriminatory.  We can help you get through the process.  The interesting point to note is that we do not know how this will be monitored.
 
There are also private Cobra Administrators that will handle the entire function on a per head basis.  If you find this process overwhelming you may want to consider this option.
  
 
 
Ask Beth
Q & A 
 
Q:  I have an employee that was laid off on 10/10/08 and they did not elect COBRA at that time. If they decide to elect it now that the subsidy is being offered, do they have to pay the full premiums back to November in order to get the subsidized premium rate, effective 3/1/09?
 
A:   It depends on how many people are employed at your company.   If you have 20 or more employees, the answer is "no", because your company is subject to the federal COBRA protection laws.   Under the new federal guidelines, employees that were terminated between September 1, 2008 thru February 16, 2009 that did not elect COBRA under the old guidelines, must now be given the option of electing coverage under the new guidelines which include the 65% subsidy.   If they now wish to elect the coverage, they can begin with any period beginning after February 16, 2009, without paying the premiums back to when their old coverage stopped.  This is different from what it has been in the past, and is an exception based on the new guidelines.
 
If, however, your company has less the 20 employees, you are subject to the Mini-COBRA laws of Massachusetts, which does not allow this second chance option to employees that originally declined.   If they declined, they will not be eligible for the subsidy (see full explanation above -- "Mini-COBRA Update").  
 


 
ANY QUESTIONS?
 
  SEND BETH AN E-MAIL.

Self Insured Plans  
HMA Direct Update
 
As brokers, we can represent any carrier we want. In fact there are many companies that would like us to sell their products.  It is important to have a handle on all available products in the marketplace and we will meet with possible vendors to determine if their programs are feasible for our clients.

Our last email issue warned readers to stay away from products like HMA Direct & Trustmark. We  strongly recommend you be cautious of those carriers.  Recently the New Hampshire Division of Insurance has announced they also have concerns with HMA Direct, note story in the Boston Herald.