American Recovery and Reinvestment Act of 2009

The COBRA provisions of the American Recovery and Reinvestment Act of the 2009 provide for an employer subsidy of COBRA premiums for involuntarily terminated employees.  The COBRA provisions go into effect on March 1, 2009.

An eligible individual will only be required to pay 35% of his/her COBRA premium.  The remaining 65% of the COBRA premium will be reimbursed by means of a payroll tax credit to the insurer. 

An eligible individual is a person who becomes eligible for COBRA between September 1, 2008 and December 31, 2009 due to a covered employee’s involuntary termination of employment with the exception of those discharged for gross misconduct.  The subsidy applies to spouse and dependents who are eligible for COBRA coverage as well. 

The subsidy will be available for nine months, but not beyond the end of the maximum period of coverage required under COBRA or the individual’s becoming entitled to coverage under a new employer-sponsored group health plan or Medicare. 

For more information, please contact Human Resources at (865) 483-1551.

 

The Children’s Health Insurance Program Reauthorization Act of 2009

The Children’s Health Insurance Program Reauthorization Act of 2009 has brought significant changes to the enrollment section of our plan documents.  The effective dates of the changes are April 1, 2009 – September 30, 2013.

The changes permit a Special Enrollment when:

• The employee’s and/or dependent’s Medicaid or State Child Health Plan coverage has terminated as a result of loss of eligibility, and the employee requests coverage under the plan within 60 days after the termination; or

• The employee or dependent become eligible for a premium assistance subsidy under Medicaid or a State Child Health Plan, and the employee requests coverage under the plan within 60 days after eligibility is determined.

 

Please contact Human Resources with questions at

(865) 483-1551