COBRA Premium Subsidy Extension Compliance Guide
Group health plans and their sponsoring employers face added responsibilities under the COBRA subsidy amendments adopted under H. R. 4691.
Newport Beach, CA (PRWEB) March 12, 2010
Secova Inc., a leading provider of human resource and benefit management services, today released a summary of the legislation signed by Obama into law on March 2, 2010 extending federal subsidies of COBRA health care premiums through the end of march.
For your general information, please download the Secova Temporary Extension Act (http://www. secova. com/company/news/kcenter. asp) Help Book that we have published to assist companies in understanding the new provisions.
Under H. R. 4691, the "Temporary Extension Act of 2010", the 65%, 15-month premium subsidy is extended to those individuals who are involuntarily terminated from employment on or before March, 31 2010 under the new legislation. In addition, individuals who experienced a reduction in hours on or after September 1, 2008 and are involuntarily terminated on or after March 2, 2010 are eligible for 15 months of subsidized premium.
These changes require employers and other group health plan sponsors, insurers and administrators to act immediately to comply with amended mandates. The extension gives the Senate more time to consider the new proposal to extend the subsidy to the involuntarily terminated through the end of the year.
Secova is a leading Benefits Management Services company that delivers customized "Value-Sourced" solutions designed to enhance services and reduce operating costs. Secova's mission is to help its clients control and drive down the cost of delivering Human Resources & Employee Benefit Services. Secova's customized and flexible benefits administration solutions are designed to complement the client's overall benefit administration strategies, to help lower costs and improve service quality while enhancing timeliness, accuracy and responsiveness to the client's employees. For more invormation visit us at www. secova. com.
This press release was distributed through PR Web by Human Resources Marketer (HR Marketer: www. HRmarketer. com) on behalf of the company listed above.