COBRA Extension Fact Sheet Released

The federal Employee Benefits Security Administration (EBSA) recently updated a fact sheet on the COBRA premium reduction program. Reflecting changes made by the Temporary Extension Act (TEA) passed on March 2, 2010, the fact sheet outlines requirements to be eligible to receive the 65 percent premium reduction subsidy, among other things.

Click here to view the complete fact sheet.

COBRA Subsidy Extended and Medicare Doc Fix Delayed

On March 2, President Obama signed into law “Temporary Extension Act of 2010,” (H.R. 4961) staving off the expiration of federal COBRA subsidies for 30 days while also delaying a 21% cut in Medicare provider payments. After the House had approved this bill last week, Senator Jim Bunning (R-KY), voicing his objections to how the bill would be financed, initiated and wouldn't back down from a filibuster until late Tuesday night.

Aimed at extending COBRA and unemployment insurance even further, the Senate is set to begin debate on a $150 billion bill introduced by Sen. Max Baucus (D-MT). The bill would extend these benefits through December 31, 2010.

For more on these development, click here to access the Kaiser Health News story.

COBRA and Form 550 Compliance Webcasts

The Department of Labor and the Employee Benefits Security Administration recently hosted two compliance webcasts designed to provide plan administrators guidance on administering COBRA premium reduction subsidies and filing the 2009 Form 5500.

Both archived webcasts can now be found online on the EBSA website.

To access the webcast on COBRA premium reduction subsidies, click here.

Click here to view the 2009 Form 5500 webcast.

DOL Webinars on 2009 Form 5500 and COBRA Premium Reduction Extension Provisions

The Employee Benefits Security Administration (EBSA) is hosting two upcoming webinars. On Thursday, January 21st at 1:00pm Eastern, staff members from EBSA and the Department of Labor (DOL) will provide plan sponsors with assistance in understanding the changes to the form and filing process. In addition, they will introduce users to the new EFAST2 electronic filing website. And, a representative from the Internal Revenue Service (IRS) will discuss filings that now will be submitted only to the IRS. The webinar can be access by clicking here.

At 1:00pm Eastern time on Friday, January 22nd, DOL and EBSA staffers will discuss the extension and provide assistance in complying with the new requirements, including the model notices and transition period. This webinar can be access by clicking here.

Obama Approves COBRA Subsidy Extension

On Monday, President Obama signed into law the Fiscal Year 2010 Defense Appropriations Bill (H.R. 3326), which includes provisions affecting the federal COBRA subsidy program. The bill extends the 65 percent subsidy duration period to eligible individuals from nine to 15 months and also extends the COBRA coverage eligibility date from December 31, 2009 to February 28, 2010. Eligible workers - those involuntarily terminated between September 1, 2008 and December 31, 2009 and formerly covered under an employer's group health plan - now include those who are laid off between January 1 and February 28, 2010.

The Wall Street Journal reports that, "the subsidy is provided in the form of a payroll tax credit to employers with 20 or more workers."

For more coverage, clickto visit the Wall Street Journal article or an article from USA Today.

COBRA Extension Bill Up for Vote

Around 1:00am Friday morning, the Senate voted to limit debate on the 2010 defense spending bill (H.R. 3326). Buried deep inside the bill are provisions that would extend federal COBRA subsidies to February 28, 2010. A full Senate vote is expected at 7:30am Saturday morning.

Current law provides subsidies only to those who are involuntary terminated and lose health insurance coverage by December 31, 2010. Proposed in the defense spending bill are provisions that would extend the 65% subsidy to 15 months and would be offered to those who become eligible by February 28, 2010. Other provisions of the bill include:

• Clarification that only the date of the qualified event relating to the COBRA coverage (e.g. the involuntary termination of employment) will determine eligibility for the COBRA subsidy - and not the date the individual becomes covered by COBRA

• An opportunity for those individuals who lost eligibility for the subsidy (i.e. when the subsidy expired on November 1, 2009) and then lost COBRA coverage due to non-payment of premiums, to retroactively continue COBRA coverage and the subsidy by paying the premium within the later of 60 days from the date of enactment, or 30 days from notification. This also extends to those individuals who lost eligibility for the subsidy but retained their COBRA coverage by paying the full premium

• New and updated notification requirements, including providing a notification within 60 days of enactment that describes the new subsidy provisions to those individuals who were assistance eligible individuals (AEIs) or became AEIs on or after October 31, 2009. In the case of a qualifying event that occurs after enactment, this notice will be provided as part of the COBRA election notice

• Treating the new requirements as having been included as part of the original language contained in the American Recovery and Reinvestment Act of 2009.

The text of the bill can be read on the House Appropriations Commitee website at http://appropriations.house.gov/.

Source: USI Insurance, Littler Mendelson "Washington DC Employment Law Update"

First Wave of COBRA Subsidies Nearing End

Kaiser Health News reports on the soon-to-expire federal COBRA subsidy for workers involuntarily terminated between September, 2008 and December, 2009. As the end of the first wave of subsidies approaches, many workers face the challenge of paying for health insurance coverage, and perhaps forgoing important medical treatment. President Obama has stated that he thinks Congress should make extending the subsidy period a priority, but the issue has not been marked for consideration on the calendars of either chamber. There are, however, two proposed bills waiting to be debated.

Read the complete article by clicking here.

Further coverage, from the New York Times, can be found here.