Obama Administraton Stimulus Package | Health and Welfare Rates for 2009 | Recent Changes to Benefits Effective January 1, 2009 | Minnesota COBRA Subsidy Program | Federal COBRA Subsidy program extended

IMPORTANT ANNOUNCEMENT FOR ACTIVE PARTICIPANTS
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Federal COBRA Subsidy program extended:

The American Recovery and Reinvestment Act of 2009 (ARRA), which was signed into law by President Obama on February 17, 2009, and further amended on December 21, 2009, provides for temporary COBRA premium payment relief for eligible individuals who have lost coverage due to an involuntary termination of employment on or after September 1, 2008.   

The Recovery Act and its Amendment provides for a subsidy of COBRA continuation coverage premiums for a maximum of fifteen (15) months for COBRA qualified beneficiaries who lost or will lose their coverage between September 1, 2008 and February 28, 2010 due to an involuntary termination of employment.  In addition, if you are eligible for other group health coverage (such as through a new employer’s plan, a spouse’s plan, or Medicare) you are NOT eligible for the premium reduction.  Eligible does NOT mean Covered.  In other words, if you are eligible for other group health coverage and choose not to elect it, then you are NOT eligible for this government subsidy.

Under the Recovery Act and recent Amendment, eligible participants are only required to pay 35% of the COBRA premium for the first fifteen (15) months of their COBRA coverage.  The Plan will be reimbursed for the remaining 65% by the Federal Government.

Minnesota COBRA Subsidy Program:

If you are eligible for the Federal COBRA Subsidy program through the OBAMA Administration Stimulus Package, you may want to check into a possible benefit from the State of Minnesota.  Please use the link below and find the “What’s New” box, choose the link for Minnesota COBRA Premium Subsidy. www.uimn.org

Obama Administration Stimulus Package

On February 17, 2009 President Obama signed into law the American Recovery and Reinvestment Act of 2009 (“ARRA”).  One of the provisions of this Act provides for the subsidizing of COBRA coverage for eligible participants who have involuntarily had a termination of employment since September 1, 2008. 

Effective March 1, 2009, the Recovery Act provides for a subsidy of COBRA continuation coverage premiums for a maximum of nine (9) months for certain COBRA qualified beneficiaries who lost or will lose their coverage due to an involuntary termination of employment between September 1, 2008 and December 31, 2009.  This subsidy will only apply to COBRA payment for March 2009 coverage or future months of coverage.  In addition, if the individual is eligible for other group health coverage (such as through a new employer’s plan, a spouse’s plan, or Medicare) he/she is NOT eligible for the premium reduction.

Under the Recovery Act, eligible participants would only be required to pay 35% of the COBRA premium for the first nine (9) months of their COBRA coverage.  The remaining 65% will be funded by the Plan and will be later reimbursed to the Plan by the Federal Government.

If you believe you may be eligible, you should be receiving a COBRA notice on or before April 18th.  If you do not receive this notice by this date, please contact Wilson McShane Corporation at 952-854-0795 and request a COBRA election form.

The Trustees are working with the Fund Office, Wilson McShane Corporation and Legal Counsel in order to set procedures for administering this subsidized benefit. 

COBRA monthly premiums for the Plan are $812/month effective May 1st, 2009.

If you are currently paying for Special Continuation Coverage or COBRA coverage, you are urged to make the full payment due for April coverage until final determinations can be made regarding the requirements of this Act.  This would be necessary in order to eliminate any delays at the pharmacy and/or in the payment of claims.  Any payments you make in the full amount will be credited to future COBRA payments for the participant paid 35% requirement if you are determined to be eligible for the subsidy.

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Health and Welfare rates for 2009

The active contribution rates and premiums have changed effective with May 1, 2009 work month and applicable coverage month of August 2009.

                                    Contribution Rate         Premium Amount
Plan A Family               $6.63                           $962
Plan A Single                $5.13                           $744

Effective with May work month/August coverage, it will require approximately 145 hours per month in order to maintain coverage. 

It is important to note that if you lose eligibility, you do not regain eligibility immediately upon your return to work.  There is a two (2) month lag in your eligibility. In other words, the hours you work in April 2009 don’t actually dictate eligibility until July coverage.  Please keep this in mind when making a decision about your health coverage.    

The retiree self pay rates have changed effective for May 2009 coverage by an approximate 10% increase.  All retirees should have received written notice of the effective changes by April 10th. 

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RECENT CHANGES TO BENEFITS EFFECTIVE JANUARY 1, 2009

Enhanced Stop Smoking Program sponsored by Blue Cross
Blue Shield of Minnesota. 

If you or your eligible dependents smoke and desire to quit, enrollment in this program will provide you access to a phone-based “Quit Coach” who will guide and support your efforts and supply you with Nicotine Replacement Therapy products such as patches, gum, and lozenges.  The Plan will pay the entire cost for these quit aids.  The Enhanced Stop Smoking Program typically experiences higher participation and a higher quit rate than the basic program.

Any Plan coverage for smoking cessation aids requires the participant to be enrolled in the Enhanced Smoking Cessation program sponsored by Blue Cross Blue Shield of Minnesota.  You may enroll by calling 1-888-662-2583. 

Smoking Cessation Medication

The Plan will provide prescription smoking cessation drugs when prescribed by a physician only if you are actively participating in the Blue Cross Blue Shield Enhanced Stop Smoking Program and under the guidance of a Quit Coach. 

Extended Coverage for Students with Serious Illness

Extension of Benefits for Dependent Children for Serious Medical Conditions

A Dependent child who is eligible for coverage based on qualifying student status as a post-secondary educational institution whose serious illness or injury requires a leave of absence or change in enrollment that would cause the Dependent Child to lose coverage will be granted a one-year extension of benefits.
To request this extension of benefits, the Participant must submit written certification from the Dependent Child’s physician certifying that the child is experiencing a serious illness or injury, and that the leave of absence or other change in enrollment from the post-secondary institution is medically necessary.
Note that the one-year extension of benefits will apply only if the Participant maintains coverage, either through continuing eligibility, self-payment or COBRA continuation coverage.  The extension of benefits will end if the Participant’s coverage terminates.

Please watch your mail in April for the Important Announcement for Active participants which will provide complete information on the recent changes to the Plan.

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