labor lawAdivision of labor law center

The ARRA or American Recovery and Reinvestment Act of 2009 includes a special provision for continued healthcare coverage for unemployed workers under COBRA.

The COBRA subsidy means that many terminated workers will pay just 35% of their usual COBRA subsidy. The employer will pay the balance of the premium and take a tax credit on the quarterly payroll taxes. 

According to the latest U.S. Department of Labor COBRA Subsidy Fact Sheet, employers must conduct a special COBRA election period for qualified employees that lasts for 60 days. Notices about the special election period must be mailed to all eligible employees by April 17, 2009.

Individuals who were involuntarily terminated from September 1, 2008 through February 16, 2009 and did not elect to take COBRA coverage when it was offered, are eligible for the special election period. Workers who initially elected for the COBRA coverage but are no longer covered (perhaps because they have stopped paying the premiums) are (more…)

Many employers have questions regarding the COBRA subsidy under ARRA, the American Recovery and Reinvestment Act of 2009.

One of the key features under the ARRA is a 65% subsidy to provide COBRA continued healthcare coverage to the unemployed.

Employers need to realize that regulations are still being written for this law that went into effect on February 17, 2009. We will continue to update employers as new regulations are published.

COBRA, of course, is the Consolidated Omnibus Budget Reconciliation Act, a law that permits employees who have lost their jobs to continue their group insurance coverage for up to 18 months. COBRA also applies to dependents of ensured employees, and to employees who lose coverage because their hours have been reduced.

Only employers with 20 or more (more…)

Many employers have questions about the COBRA subsidies offered under the Obama administration’s stimulus plan, which was signed into law on February 17, 2009.

The  ARRA, or American Recovery and Reinvestment Act of 2009, included a provision to subsidize extended health insurance coverage under COBRA, for some eligible employees.

The plan applies only to an “assistance eligible individual” or AEI who is laid off through no fault of his or her own, or is a dependent of a laid-off employee.

The subsidy applies beginning March 1, 2009 for employers who use calendar months for healthcare coverage.

Under the plan, the employee pays just 35% of his or her COBRA health care premium. The employer pays the other 65% of the COBRA premium. Employers can then take a tax credit (more…)

The U.S. Department of Labor recently issued final rules under the Newborns’ and Mothers’ Health Protection Act of 1996. These new regulations take effect on December 19, 2008, according to a recent news bulletin by the SHRM, the Society of Human Resource Management.  The regulations apply to health insurance plans issued on or after January 1, 2009.

The rules were issued in conjunction with the U.S. Department of Health and Human Services and the Treasury Department. The rules apply to group health plans and health insurers, including businesses that are self-ensured.

The new U.S. Department of Labor rule extends the length of time mothers and newborn babies may stay in the hospital, following childbirth.

Under the “general rule”, employers or their healthcare plans cannot limit benefits for a hospital stay after a normal delivery to 48 hours. However, the employer or healthcare plan cannot restrict the hospital stay to a shorter period. In addition, employers can (more…)

 Employers are invited to comment on new regulations by the U. S. Department of Labor regarding the employment of veterans by federal contractors.

The federal Veterans Employment and Training Service (VETS) recently announced the publication of a Notice of Proposed Rulemaking on Priority of Service for veterans and eligible spouses. The proposed regulations apply to “any workforce preparation, development or delivery program or service that is directly funded, in whole or in part, by the Department of Labor,” as provided by the Jobs for Veterans Act which was enacted in 2002. (more…)