| Issue: # 42 |
January 25, 2010 |
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Happy New Year!
As most of you have heard, the Federal Cobra Subsidy Program has been extended. Please read below to get more details.
First quarter health insurance renewals have been very challenging. Average renewals are ranging from 15% to 25%. Employers are being forced to review the contribution level as well as plan design options. Many employers are introducing a traditional deductible plan, and in some cases offering 2 different plan design options.
In addition, the Department of Workforce Development has mailed out the notifications to complete the on line filing of the Employer Fair Share Contribution (FSC). The filing deadline is 2-15-10.
As always, if you have any questions email Bill or Vanessa. We hope you find these newsletters helpful, please forward to anyone who may find this of interest. To learn more about Advantage Benefits click here.
Next time you are in our area, check out our new electronic message board.
Sincerely,
Bill Randell, CLU, CHFC Vanessa Costa, CLU,CHFC
Advantage Benefits Group, Inc.
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| COBRA subsidy - Update
Extension has been extended and expanded |
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Last year's American Recovery and Reinvestment Act provided a government subsidy to help people who were invountarily laid off between Sept. 1, 2008, and Dec. 31, 2009. The Federal Subsidy pays 65 percent of COBRA health insurance premiums for up to nine months. Last month, there was concern and discussion about a possible extension of the program.
It is now official, eligibility for COBRA premium assistance has in fact been extended for an additional two months under the Department of Defense Appropriations Act, 2010. Please remember employees must experience involuntary termination between September 1, 2008 and February 28, 2010 in order to qualify for the COBRA benefits.
Under the new law, assistance eligible individuals may now receive up to 15 months of subsidized coverage, up from nine months as originally provided under the Recovery Act. This is a 6 month extension of the original coverage of 9 months.
If you have an employee receiving the subsidy, NO ACTION IS NECESSARY. Just continue to collect the 35 percent of the COBRA premiums, and receive the 65% credit quarterly from the Federal Government.
There are three scenarios, however, where you will need to take action:
- If you had an employee who exhausted his or her 9 month period and has been paying 100% of the premium.
- If you had an employee who exhausted his or her 9 month period and then cancelled coverage.
- An employee was offered COBRA on or after October 21st, 2009, but refused to elect COBRA.
Contact us and we will explain what you need to do. |
| Fallon Health Plans
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| Fallon has two different HMO networks in Massachusetts - Direct and Select. In the past, we would explain the Direct network as the smaller of the two representing mainly the free standing Fallon Clinics with rates approximately 13% lower then the larger Select network.
Perhaps it is time to revisit the Direct Network. Check out how the number of participating physicians has expanded:
- 2009 13,882
- 2008 11,123
- 2007 8,823
- 2006 7,611
- 2005 5,981
If you currently have Fallon, check to see if your doctor accepts Direct. A simple changing of networks may generate a rate reduction of approximately 13%. | |
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