Your HR and Benefits Specialists

HRS/TND Associates, Inc.

The HR-Edge April Edition

HRS recently completed presentations to many groups totaling over 1000 individuals on the facts and implications of the Subsidy COBRA that took initial effect in mid February.   We are still scheduled for one more presentation.  We are honored to have had so many listen to our training and we are appreciative of the notes of thank you we have received.  Sean Glasser, our COBRA Administrator has done an outstanding job in both training and tuning our system to ARRA COBRA.

 

The first critical deadline is in less than a week and many employers have still to make arrangements for complete compliance.  We have assisted dozens more employers wither as there administrator and completely taking over all COBRA activities or as an advisor providing hands on assistance for employers who have elected to do all COBRA work internally.

 

Recently the IRS clarified the meaning of involuntary termination and they did add more clarity to it.  In essence, the definition is so broad that all but the most extreme firings are included.  Details of the definition are on the IRS web site.  It is important to remember that the ARRA law still wants to have each ex employee exercise the opportunity to self-select whether or not they are eligible for the subsidy (AEI). 

 

Bottom line is:  EVERYONE GETS A LETTER.  Contact us for clarity at hrguys@hrstndassociates.com.

Volume 8, Issue 7, 4/9/09

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Welcome

 

New I-9 forms...again!

 

ALERT TO SMALLEMPLOYERS— PA Mini COBRA?

 

ARRA COBRA and the World of Subsidy

 

New Special Enrollment Rights under CHIPRA

 

New Clients

 

 

Click here for past editions

This is a reminder that the newly revised special enrollment rights under the Children's Health Insurance Program Reauthorization Act of 2009 (“CHIPRA”) became effective April 1, 2009. From a practical perspective, however, most employers are already allowing employee elections for the kinds of changes in coverage that CHIPRA affects right now.

 

Under CHIPRA, employers will have to allow otherwise eligible employees and

dependents to enroll in their insured or self insured group health plan outside of open enrollment under the following circumstances:

• Loss of eligibility for Medicaid or a State child health plan (“CHIP”); and

• Eligibility for a state subsidy funded under Medicaid or CHIP that would cover an employee’s or dependent’s premium cost under the employer plan.

 

The special enrollment rights relating to possible State subsidies will not come into play unless and until the States adopt such subsidies. Guidance from the U.S. Department of Labor on these issues is not expected until later this year, at the earliest. Those related to losses of eligibility under Medicaid or CHIP already exist under the current cafeteria plan regulations. While most employers adopt the entire list of permitted election changes under the cafeteria plan regulations, they are not mandatory, whereas, the new CHIPRA changes are. In addition, the CHIPRA changes allow employees and dependents up to 60 days to request special enrollment for loss of coverage under Medicaid or CHIP or subsidy eligibility, as opposed to the normal 30 day period.

Welcome to the April edition of the HREdge.  There is much hot HR news right now and so little time to report it.  In this abbreviated edition we want to ‘catch you up” on news as we see it.

Just when you thought it was safe to come out of the woods of the new ARRA COBRA requirements of the Stimulus Act, the Pennsylvania Senate unanimously passes a Mini COBRA bill that would expand COBRA to virtually all PA employers.

 

The proposal will require employers of less than 20 to comply with the general and ARRA COBRA requirements currently.  It appears that employers or their designated administrator will be responsible for administrating the provisions of the bill.  This is unlike most other states where the carrier is responsible for administration.  This bill states a 30 day effective period and gives employers short notice to begin compliance.

So far only the Senate has handled the bill and we have no information on when the House might take up the bill. 

 

It is our opinion that rapid passage will occur with this bill as the Senate passed it without a nay vote and it heavily refers to coordination with the ARRA COBRA.  If passed, it will require small employers to immediately comply with COBRA laws that were probably, heretofore, unknown to them. 

 

If you have questions contact Tom at 610 371 9505 X21 or by email.  If this law passes and you would want to attend a seminar on how to comply, email your potential interest to hrguys@hrstndassociates.com .  We will notify you of our seminar as soon as it is scheduled.

For at least the second time within a one year period the U.S. Citizenship and Immigration Services (USCIS) has changed the I-9 form.  This new form must be used after April 3.  It is the same form originally slated to be used in February before the Obama administration put on the delay of any regulation changes left over from the previous administration.

 

The new form is on our website at www.hrstndassociates.com and complete information is available on the USCIS website at http://www.uscis.gov .

If you have questions contact Mike Sheerer at mikes@hrstndassociates.com .