NEWPORT BEACH, CA — April 29, 2010 – Secova Inc., a leading provider of human resource and benefit management services, today released a summary of the updated model notices and the legislation that reflect the provisions signed by President Obama into law on April 15, 2010 extending federal subsidies of COBRA health care premiums through the end of May.
For your general information, please download the COBRA Continuing Extension Act of 2010 Help Book that we have published to assist companies in understanding the new provisions.
Under H.R. 4851, the “Continuing Extension Act of 2010”, the 15-month premium subsidy (65% of COBRA premium) is extended to those individuals who are involuntarily terminated from employment on or before May, 31 2010 under the new legislation. The bill also provides transition relief for those who lost their jobs between March 31st and April 15th.
The new bill extends the COBRA subsidy for those who experienced a qualifying event that is a reduction in hours (occurring anytime on or after 9/1/08) followed by an involuntary termination of employment on or after March 2, 2010, and on or before May 31, 2010.
These changes require employers and other group health plan sponsors, insurers and administrators to act immediately to comply with amended mandates. The extension gives the House and the Senate more time to negotiate and reach a deal on a bill that extends the subsidy to the involuntarily terminated through the end of the year.
Secova is a leading Benefits Management Services company that delivers customized “Value-Sourced” solutions designed to enhance services and reduce operating costs. Secova’s mission is to help its clients control and drive down the cost of delivering Human Resources & Employee Benefit Services. Secova’s customized and flexible benefits administration solutions are designed to complement the client’s overall benefit administration strategies, to help lower costs and improve service quality while enhancing timeliness, accuracy and responsiveness to the client’s employees. More information on the company is available at www.secova.com.
This press release was distributed through PR Web by Human Resources Marketer (HR Marketer: www.HRmarketer.com) on behalf of the company listed above.