So many companies are reducing their workforce these days. If your company is one of them, the employee health insurance coverage law known as COBRA may already be on your agenda.
Weeding through COBRA's jungle of legal information can be time consuming. There are deadlines, timelines. Strict eligibility rules, too. To make it easier, here are some basic facts:
Learn how your employee count is determined
Both full- and part-time employees are included in your employee count. The U.S. Department of Labor uses a formula to count part-time employees. It's based on hours worked.
Discover the qualifying events
To be eligible, your employees and their dependents must be covered by your group health plan the day before one of these qualifying events:
Dependent children may also qualify when they lose their dependent child status. For instance, they reach an age when they no longer qualify under their parent's plan.
Remember the timelines
See who qualifies
Typically, those electing coverage under COBRA pay the entire cost plus an administrative fee. But Congress recently passed new COBRA legislation as part of the economic stimulus package. That means eligible workers may receive a 65% premium subsidy for 9 months.
Log on to the U.S. Department of Labor website. You'll find great resources to help you manage COBRA. There are:
Are COBRA's timelines and legal rules too much to handle? We have Individual Billing Administration services that can help you navigate through COBRA administration. Contact your Aetna representative to learn more.