The following is a letter we sent to Clients Regarding the American Recovery and Reinvestment Act on April 9, 2009:
Please note this very important and time sensitive information about the American Recovery and Reinvestment Act
Dear Client,
This American Recovery and Reinvestment Act was signed into law by President Obama and includes provisions relating to the government subsidy of health insurance benefits available through COBRA and state continuation health insurance plans. The employer is required under federal law to provide notice to individuals currently receiving COBRA or state continuation coverage that federal premium assistance is available.
This notice must be provided by April 18, 2009. The following link provides notice information about eligibility and notice for recipients:
http://www.ohioinsurance.gov/ConsumServ/COBRA.htm
Under the Act, employers must provide modified election notices or provide separate supplemental notices to all persons who became entitled to elect COBRA and/or continuation coverage during the period beginning on September 1, 2008 and ending on December 31, 2009.
In addition, please note that on April 1, 2009, the Governor of Ohio signed Sub. H.B.2 which amended ORC 3923.38 and 1751.53, the state continuation laws, in the following ways:
- Coverage has been extended from 6 months to 12 months
- Entitlement to unemployment compensation is no longer required
- Employees must be involuntarily terminated, other than for gross misconduct
- Continuation coverage may not exclude prescription drug coverage if it is included in the group coverage.
Please see the attached correspondance from the Ohio Department of Insurance.
http://www.ohioinsurance.gov/ConsumServ/COBRA.htm
Feel free to call our office with questions.
Sincerely,
McCarthy Stevenot Agency, Inc.