On February 17, 2009, President Obama signed into law a comprehensive federal stimulus package, entitled the American Recovery and Reinvestment Act of 2009 ("ARRA"). Among the ARRA provisions are new COBRA rules which enable most terminated employees to obtain a federal subsidy of up to 65% of their cost of continued medical coverage as well as extensions to their COBRA continuation periods and options to change their COBRA coverage.
The new COBRA provisions require employers and their plan administrators to modify their present policies, procedures and forms no later than April 17, 2009.
The new rules cover employees who were terminated as long ago as September 1, 2008. Employers are required to send special notices to those ex-employees if they are receiving COBRA coverage. Employers will also be required to modify current COBRA notices and begin sending them to employees who have been terminated since ARRA was passed. Notices to both ex-employees and recently terminated employees must be mailed no later than the April 17, 2009 deadline. These requirements will require the adoption of new forms, notices, policies and procedures, and will require an internal audit to identify those individuals who may be entitled to the subsidy and notification.
The COBRA provisions of ARRA also create a new process through which employers and insurers receive the subsidy payments from the government. These processes will also require strict compliance with the applicable deadlines and forms in order to obtain timely payments.
It is critical that employers be familiar with the new rules and forms even if you have contracted with a third party administrator to manage your benefit and COBRA compliance.
The Liebmann, Conway, Olejniczak & Jerry, employment law team will conduct a special 2-hour workshop on Thursday, March 19, 2009 from 8:00 a.m. to 10:00 a.m. to discuss the new COBRA rules and their impact on employers and plan administrators. During the workshop, participants will receive model forms, policies and notices designed to comply with the new regulations, and training will be provided on the eligibility standards, notification requirements and subsidy reimbursement process.
The workshop will be held at the Holiday Inn City Centre, 200 Main Street, Green Bay. Registration will begin at 7:30 a.m. The cost of the workshop is $195 which covers the first 3 attendees per employer. (The cost of the fourth and each additional attendee will be $25.)
If you wish to register for the workshop, or require more information, please contact Annie Dart at annied@lcojlaw.com or 920-617-5512 on or before Friday, March 6, 2009. If you would prefer individualized services, please contact a member of our firm.
