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The 2009 COBRA Premium Reduction under the ARRA affects millions of laid-off workers, and employers are being deluged with questions on it. Here are some answers to the most frequent questions.

COBRA, the Consolidated Omnibus Budget Reconciliation Act, permits employees to extend their group health insurance after being laid off or terminated. The COBRA Subsidy reduces premiums for workers who are out of work, though no fault of their own. COBRA regulations are issued through the U.S. Department of Labor.

How much is the COBRA premium reduction?

The COBRA premium reduction is 65%, meaning that the federal government picks up 65% of the tab, while the employee pays just 35% of the usual COBRA premium.

When should employees be notified of the COBRA Premium Reduction? Employees laid off between September 1, 2008 and February 17, 2009 must be informed in writing of the premium reduction by April 17, 2009.  Employees then have 60 days after receiving notice to opt to sign up for COBRA under the reduced premium.

Employees who are terminated between February 17, 2009 and December 31, 2009 must be notified of COBRA within 60 days, just as usual. However, that notification will include the reduced premium.

Any laid-off worker who has not received notification at this point, should contact both the previous employer and the insurance administrator.

Can employees who initially declined COBRA sign up now, with the reduced premium?

Yes, an employee who was terminated between September 1, 2008 and February 17, 2009 can sign up for COBRA with reduced premiums during the special election period. This is true, even if the employee initially declined COBRA coverage when terminated.

How long does the COBRA Premium Reduction last? (more…)

Already in 2009, the U.S. Department of Labor has implemented the most sweeping changes to the FMLA or federal Family and Medical Leave Act in its 15-year history.

These changes went into effect on January 16, 2009. The complete changes are complex, but here is the crucial information that employers need to know.

Required and Optional Paperwork

First, and perhaps most importantly, employers are required to give a Notice of Eligibility to any employee when it is believed that the employee may have an FMLA-qualifying absence. The employee does not have to request FMLA or mention the words FMLA. It is the employer’s duty to make the employee aware of available unpaid leave by giving the employee this notice without being asked.

The new rules change notice and certification requirements under FMLA. The new regulations attempt to clarify communications and information collection between the employer and employee by introducing two new optional medical certification forms. (more…)