The Department of Labor’s Employee Benefits Security Administration COBRA page now has available updated Model Notices, Application for Expedited Review of Denial of COBRA Premium Reduction, Fact Sheet, and Frequently Asked Questions (FAQs) that reflect the provisions of the Continuing Extension Act of 2010. They are available at http://www.dol.gov/COBRA 

 ARRA, as amended by the Continuing Extension Act of 2010 (CEA), mandates that plans notify certain current and former participants and beneficiaries about the COBRA premium reduction. The Department created model notices to help plans and employers comply with these requirements. Each model notice is designed for a particular group of qualified beneficiaries and contains information to help satisfy ARRA’s notice provisions, including those amended by CEA.

Model Updated General Notice Plans subject to the Federal COBRA provisions must provide the updated General Notice to all qualified beneficiaries (not just covered employees) who experienced a qualifying event at any time from September 1, 2008 through May 31, 2010, regardless of the type of qualifying event, and who have not yet been provided an election notice. This model notice includes updated information on the premium reduction, as well as information required in a COBRA election notice. Note: Individuals who experienced a qualifying event that was a termination of employment from April 1, 2010 through April 14, 2010 may not have been provided proper notice. Those individuals who have not been provided any notice must get the updated General Notice and receive the full 60 days from the date the updated notice is provided to make a COBRA election. Those individuals who have been provided a notice that did not include information related to the most recent extension must also be provided this updated information.

Depending on the specific circumstances, either the Supplemental Information Notice or the Notice of Extended Election Period may be used. See below for additional details. Model Notice of New Election Period Plans subject to continuation coverage provisions under Federal or State law should provide, within 60 days of the date of the termination of employment, a Notice of New Election Period to all individuals who: experienced a qualifying event that was a reduction in hours at any time from September 1, 2008 through May 31, 2010; subsequently experience a termination of employment at any point from March 2, 2010 through May 31, 2010; and either did not elect continuation coverage when it was first offered or elected but subsequently discontinued the coverage. Generally, individuals who have experienced a qualifying event that consists of a reduction of hours and who, from March 2, 2010 through May 31, 2010, experience an involuntary termination of employment must be provided this notice within 60 days of the event. Additionally, CEA provides that for the April 1, 2010 through April 14, 2010 period, the notice requirement attaches to any termination of employment.

The Department strongly recommends that notice be provided to individuals who experienced any termination of employment because employers may be subject to civil penalties if it is later determined that the termination was involuntary and notice was not provided. Model Supplemental Information Notice Plans that are subject to continuation coverage provisions under Federal or State law should provide the Supplemental Information Notice to all individuals who elected and maintained continuation coverage based on the following qualifying events: all qualifying events related to a termination of employment that occurred from March 1, 2010 through April 14, 2010 for which notice of the availability of the premium reduction available under ARRA was not given; or reductions of hours that occurred during the period from September 1, 2008 through May 31, 2010 which were followed by a termination of the employee’s employment that occurred on or after March 2, 2010 and by May 31, 2010.

For the first item above, plans must provide this notice to all individuals with a qualifying event related to any termination of employment if they have not already been provided notice of their rights under ARRA. This notice must be provided before the end of the required time period for providing a COBRA election notice.

For the second item above, generally, individuals who experience an involuntary termination of employment from March 2, 2010 through May 31, 2010 after experiencing a qualifying event that consists of a reduction of hours must be provided this notice within 60 days of the termination of employment. However, as noted above, CEA requires plans to provide notices to all individuals with qualifying events related to any termination of employment that occurred from April 1, 2010 through April 14, 2010. In those cases, this notice must be provided before the end of the required time period for providing a COBRA election notice.

Because employers may be subject to civil penalties if it is later determined that the termination was involuntary, the Department strongly recommends that notice be provided to individuals who experienced any termination of employment. Model Notice of Extended Election Period Plans that are subject to continuation coverage provisions under Federal or State law must provide, before the end of the required time period for providing a COBRA election notice, the Notice of Extended Election Period to all individuals who: experienced a qualifying event that was a termination of employment at some time from April 1, 2010 through April 14, 2010; were provided notice that did not inform them of their rights under ARRA, as amended by CEA; and either chose not to elect COBRA continuation coverage at that time or elected COBRA but subsequently discontinued that coverage.

Model Updated Alternative Notice Insurance issuers that offer group health insurance coverage that is subject to comparable continuation coverage requirements imposed by State law must provide the Alternative Notice to all qualified beneficiaries, not just covered employees, who have experienced a qualifying event through May 31, 2010.

However, because continuation coverage requirements vary among States, this notice should be further modified to reflect the requirements of the applicable State law. Issuers of group health insurance coverage subject to this notice requirement should feel free to use the model Alternative Notice, the model Notice of New Election Period, the model Supplemental Information Notice, the model Notice of Extended Election Period, or the model General Notice (as appropriate).

We recommend to our clients that they should consider the following options to put their tax refund to work for them:

• Set up an emergency savings fund. Simply essential. The old conventional wisdom advised saving enough money to cover three to six months of unemployment. Many financial professionals now recommend keeping enough money stashed away to cover six months to one year of unemployment.

• Buy life insurance. Many people have only the life insurance plans offered by their employer. But your family needs protection whether you’re working or between jobs. There are two basic types of life insurance: term and permanent.  A financial professional can help you determine the type and amount of protection you may need.

Enjoy life knowing that you’re protected from the unexpected!

Stop by my agency on Wednesday, March 3, between 5-8 PM for wine tasting, food, fun, and prizes.  You can speak with me and my professional insurance and financial staff, as well as socialize with other local residents.  Please bring a guest…the more the merrier.  I just ask that you RSVP on my website (www.tanyaspurgeon.com) by February 24th so I know how much wine and food to provide.  I’m looking forward to seeing everyone there.

Month after month people pay their auto insurance premium wondering why they really have to pay that bill, besides the fact the state requires at least a minimum amount of coverage.  The state minimum is 25/50 in liability coverage.  So, the at-fault driver’s insurance company will pay up to $25,000 per injured person, up to a maximum of $50,000 per accident to cover expenses such as bodily injury, surgery, as well as damage to the cars. 

If you’re in a car accident with a family of four in their 2010 Mercedes and the police report names you as the at-fault driver, you had better hope that the amount of auto insurance coverage you have meets or exceeds those damages.  Otherwise, their attorney will get the money out of your estate, or even garnish your wages to be able to pay for it.  Call your insurance agent to make sure your coverages meet your needs.  You should review your policy at least one time per year to keep up with the changes in your life.

“Cervical cancer is the second leading cancer in women worldwide. This year in the United States, more than 11,000 women will be diagnosed with cervical cancer and more than 4,000 women will die of this disease,” said Tamika Felder, cervical cancer survivor and founder of the nonprofit organization, Tamika and Friends (www.tamikaandfriends.org), the lead U.S. partner in the Pearl of Wisdom campaign. “Cervical cancer, however, is almost always preventable – with the Pap test, the HPV test and the HPV vaccine. We want women to know this, to ask for the prevention tools that are appropriate for them, and to help us get the word out to other women by wearing their pearl and starting the conversation.”
Following, according to the Pearl of Wisdom campaign, is what every woman should know:
Girls and young women: Ask your healthcare provider about the HPV vaccine, which protects against the two types of HPV (human papillomavirus) that cause the majority of cervical cancers. The vaccines are recommended for girls 11 to 12 years old, and are approved for girls and young women up to age 26. Even women who have been vaccinated will still need to be screened.
Women age 21 or older: Get the Pap test, which detects abnormal cells that can lead to cervical cancer.
Women age 30 or older: Get the Pap test and the HPV test together as part of routine cervical cancer screening. The HPV test detects the virus that causes cervical cancer, identifying those women at increased risk who will need to be monitored more closely.