I got an email this week from the person that handles some of the benefit package offered by our company regarding changes to employee health insurance thanks to the recently passed bailout stimulus recovery law. Now if you’re like me, you’re probably wondering what health insurance has to do with economic recovery. Well, apparently, plenty. What’s also incredible is the fact that, despite the bill having been debated and discussed by Congress, nearly a month since its passage, people are STILL analyzing it to gauge its full meaning and what it requires. Of course, the fact that the federal government is going to basically go on the hook for 65 percent of the premium costs for every laid-off employee eligible to recieive health insurance continuation (COBRA) benefits is also of note as well.
Ray has given me permission to share this information with ‘Grok readers. I am including the email as written so that you can get the flavor of what just one little facet of a 1,000 page law can do. Can you imagine what all these "little" pieces must add up to in manhours and costs of analysis, forms creation, communication, and administration? What if all such manhours had been spent on something actually PRODUCTIVE instead of simply trying to comply with the law?
To My Valued Clients,
I am sending this e-mail to you, to discuss briefly what I know about the recent law changes that affect your group insurance. On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act (ARRA). The law, in its final form, exceeds 1,000 pages length. Part of the law provides a subsidy for COBRA benefits.
COBRA Subsidy
Eligible workers will receive a 65% subsidy toward their COBRA continuation premium for up to 9 months. The subsidy will begin March 1st and will be administered by the Treasury Department as a credit against payroll taxes. The subsidy will terminate the date the individual becomes eligible for any new employer-sponsored health care coverage or Medicare. The subsidy is also available for state provided comparable continuation coverage.
Eligible Individuals
An assistance eligible individual must meet the following qualifications:

)
..





