Federal Government Extends COBRA Subsidy
On March 2, 2010, President Obama signed into law legislation that extends the Federal government's COBRA premium subsidy program. The new legislation extends the subsidy program until March 31, 2010, retroactive to March 1, 2010. Currently, the Federal government is subsidizing the cost of COBRA continuation coverage for certain individuals that experience a loss of coverage under employer-sponsored health plans due to an involuntary termination. Previously, only employees who were terminated prior to February 28, 2010 were eligible for the subsidy. Pursuant to this recent extension, employees who are involuntarily terminated between March 1, 2010 and March 31, 2010 will also be eligible for the subsidy.
Continue ReadingThe COBRA premium subsidy under the American Recovery and Reinvestment Act of 2009 - What Employers and Plan Administrators need to know
The American Recovery and Reinvestment Act of 2009 ("ARRA"), which President Obama signed into law on February 17, 2009, created a federal subsidy of the premiums payable by certain terminated employees for continuation coverage provided under employer-sponsored group health plans pursuant to the requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (also known as "COBRA"). The premium subsidy and new notification requirements under COBRA that apply to employers and plan administrators as a result of this legislation are summarized below.
Continue ReadingSecond Circuit Court Of Appeals Rules That An Employer Must Notify Its Insurer Of A Potential Claim Upon Receiving A Demand Letter From Counsel
The Second Circuit's ruling in Westrec Marina Management v. Arrowood Indemnity Co. is a warning to employers to report potential claims to their insurance carrier as soon as possible or face denial of coverage. In Westrec, an employee filed a charge of discrimination against Westrec with the California Department of Fair Employment and Housing (DFEH) and requested an immediate right to sue letter. Subsequently, her attorney sent a demand letter to Westrec asserting claims and seeking possible early settlement prior to filing a lawsuit. At the time of the letter, Westrec failed to inform its insurer, Arrowood, of the claim. The employee later filed a civil action, and when Westrec tendered the claim, Arrowood denied coverage.
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