Академический Документы
Профессиональный Документы
Культура Документы
The American Recovery and Reinvestment Act of 2009 (ARRA) provides “Assistance Eligible
Individuals” with a 65% reduction in the premiums for COBRA health care continuation
coverage for periods beginning February 17, 2009.
Please read the information contained in this notice very carefully to determine if you qualify for
the COBRA premium reduction under ARRA. If you qualify, you must complete the enrollment
and eligibility certification forms and submit them to Ceridian within 60 days from the date of this
notice to receive the COBRA premium reduction.
Do I qualify?
To be considered an “Assistance Eligible Individual” and receive the 65% COBRA premium
reduction, you must meet all three of the following conditions:
If you have questions about your rights to continuation coverage or about ARRA’s COBRA
provisions, detailed information is available on our Web site at www.ceridian-benefits.com.
The COBRA premium reduction is expected to help 7 million Americans maintain their health
insurance coverage. As a result, our COBRA Service Center is experiencing heavy call volume.
To avoid phone delays, we strongly encourage you to use our Web site or other non-
phone options for information. You can reach our Ceridian COBRA Service Center at
1-800-877-7994.
Remember, you have only 60 days from the date of this notice to complete and submit your
eligibility certification and enrollment to Ceridian to take advantage of the 65% COBRA premium
reduction under ARRA. You will have an additional 45 days from the date of your election to
pay your initial COBRA premium. If you do not do this, you will lose all continuation coverage
rights under the plan.
Sincerely,
L2v.2
Summary of the COBRA Premium
Reduction Provisions under ARRA
President Obama signed the American Recovery and Reinvestment Act (ARRA) on February 17, 2009. The law gives
“Assistance Eligible Individuals” the right to pay reduced COBRA premiums for periods of coverage beginning on or
after February 17, 2009 and can last up to 9 months.
¾ MUST be eligible for continuation coverage at any time during the period from September 1, 2008 through
December 31, 2009 and elect the coverage;
¾ MUST have a continuation coverage election opportunity related to an involuntary termination of employment
that occurred at some time from September 1, 2008 through December 31, 2009;
¾ MUST NOT be eligible for Medicare; AND
¾ MUST NOT be eligible for coverage under any other group health plan, such as a plan sponsored by a successor
employer or a spouse’s employer.
Individuals who experienced a qualifying event as the result of an involuntary termination of employment at any time
from September 1, 2008 through February 16, 2009 and were offered, but did not elect, continuation coverage OR who
elected continuation coverage and subsequently discontinued it may have the right to an additional 60-day election period.
i IMPORTANT i
¾ If, after you elect COBRA and while you are paying the reduced premium, you become eligible for other group
health plan coverage or Medicare you MUST notify the plan in writing. If you do not, you may be subject to a
tax penalty.
¾ Electing the premium reduction disqualifies you for the Health Coverage Tax Credit. If you are eligible for the
Health Coverage Tax Credit, which could be more valuable than the premium reduction, you will have received
a notification from the IRS.
¾ The amount of the premium reduction is recaptured for certain high income individuals. If the amount you earn
for the year is more than $125,000 (or $250,000 for married couples filing a joint federal income tax return) all
or part of the premium reduction may be recaptured by an increase in your income tax liability for the year. If
you think that your income may exceed the amounts above, you may wish to consider waiving your right to the
premium reduction. For more information, consult your tax preparer or visit the IRS webpage on ARRA at
www.irs.gov.
For general and specific information regarding your plan’s COBRA coverage, please visit our Web site www.ceridian-
benefits.com, or contact the COBRA Services Center by mail - 3201 34th Street South, St. Petersburg, Florida 33711.
For quick access to information, go to www.ceridian-benefits.com. You may also call 800-877-7994. Please note that
the COBRA Services Center is experiencing heavy call volume due to this new legislation. To avoid phone delays we
strongly encourage you to use the Web site if at all possible.
To notify Ceridian of your ineligibility to continue paying reduced premiums, mail the Notification of Ineligibility of
Premium Reduction form to: Ceridian COBRA Continuation Services, Attn: COBRA Benefits Administration, 3201 34th
Street South, St. Petersburg, Florida 33711. The form is provided to you in this package, and is also available on
www.ceridian-benefits.com.
If you are denied treatment as an “Assistance Eligible Individual” you may have the right to have the denial reviewed. For more
information regarding reviews or for general information about the ARRA Premium Reduction go to:
www.dol.gov/COBRA or call 1-866-444-3272
Generally, this does not include coverage for only dental, vision, counseling, or referral services; coverage under a health flexible
spending arrangement; or treatment that is furnished in an on-site medical facility maintained by the employer.
The American Recovery and Reinvestment Act of 2009 (ARRA) reduces the COBRA premium in some cases. You are receiving this
notice because you experienced a loss of coverage at some time on or after September 1, 2008 and either chose not to elect COBRA
continuation coverage at that time OR elected COBRA but subsequently discontinued that coverage. If your loss of health coverage
was due to an involuntary termination of employment you may be eligible for a second COBRA election opportunity and the temporary
premium reduction for up to nine months. To help determine whether you can get the ARRA premium reduction, you should read this
notice and the attached documents carefully. In particular, reference the “Summary of the COBRA Premium Reduction Provisions
under ARRA” with details regarding eligibility, restrictions, and obligations and the “Assistance Eligible Individual Certification.” If you
believe you meet the criteria for the premium reduction, complete the “Assistance Eligible Individual Certification” and return
it with your completed Election Form.
Each person (“qualified beneficiary”) listed below, if an assistance eligible individual, is entitled to elect COBRA continuation coverage
which generally will continue group health care coverage under the Plan for up to 18 months after an involuntary termination of
employment.
x Employee or former employee
x Spouse or former spouse
x Dependent child(ren) covered under the Plan on the day before the involuntary termination of employment (and any new dependents born,
adopted, or placed for adoption on or after September 1, 2008).
If elected, COBRA continuation coverage will begin on the first coverage period beginning on or after February 17, 2009 (generally
March 1st) and can continue for up to a maximum of 18 months from the Qualifying Event Date.
COBRA continuation coverage generally costs 102% of the plan premium (COBRA premium). If you qualify as an “Assistance Eligible
Individual” this cost can be reduced to 35 percent of the COBRA premium for up to nine months. You do not have to send any
payment with the Election Form. Important additional information about payment for COBRA continuation coverage is included in this
notice.
If you have any questions about this notice or your rights to COBRA continuation coverage, you should contact Ceridian at the phone
number listed on your Important Notice.
Continuation coverage will be terminated before the end of the 18 month period if:
x any required premium is not paid in full on time,
x a qualified beneficiary becomes covered, after electing continuation coverage, under another group health plan that does not impose any pre-
existing condition exclusion for a pre-existing condition of the qualified beneficiary,
x a qualified beneficiary becomes entitled to Medicare benefits (under Part A, Part B, or both) after electing continuation coverage, or
x the employer ceases to provide any group health plan for its employees.
Continuation coverage may also be terminated for any reason the Plan would terminate coverage of a participant or beneficiary not
receiving continuation coverage (such as fraud).
In considering whether to elect continuation coverage, you should take into account that a failure to continue your group health
coverage will affect your future rights under Federal law. First, you can lose the right to avoid having preexisting condition exclusions
applied to you by other group health plans if you have a 63-day gap in health coverage, and election of continuation coverage may help
prevent such a gap. Second, you will lose the guaranteed right to purchase individual health coverage that does not impose a
preexisting condition exclusion if you do not elect continuation coverage for the maximum time available to you. If you do elect
continuation coverage under this additional election period, the period from qualifying event to the date coverage begins under your
election will not count as a break in coverage in determining whether you had a 63-day break in coverage.
The American Recovery and Reinvestment Act of 2009 (ARRA) reduces the COBRA premium in some cases. The premium reduction
is available to certain individuals who experience a qualifying event that is an involuntary termination of employment during the period
beginning with September 1, 2008 and ending with December 31, 2009. If you qualify for the premium reduction, you need only pay 35
percent of the COBRA premium otherwise due to the plan. This premium reduction is available for up to nine months. If your COBRA
continuation coverage lasts for more than nine months, you will have to pay the full amount to continue your COBRA continuation
coverage. See the attached “Summary of the COBRA Premium Reduction Provisions under ARRA” for more details, restrictions, and
obligations as well as the form necessary to establish eligibility.
The Trade Act of 2002 created a tax credit for certain individuals who become eligible for trade adjustment assistance and for certain
retired employees who are receiving pension payments from the Pension Benefit Guaranty Corporation (PBGC). Under the tax
provisions, eligible individuals can either take a tax credit or get advance payment of 65% of premiums paid for qualified health
insurance, including continuation coverage. ARRA made several amendments to these provisions, including an increase in the amount
of the credit to 80% of premiums for coverage before January 1, 2011 and temporary extensions of the maximum period of COBRA
continuation coverage for PBGC recipients (covered employees who have a non-forfeitable right to a benefit any portion of which is to
be paid by the PBGC) and TAA-eligible individuals.
If you have questions about these provisions, you may call the Health Coverage Tax Credit Customer Contact Center toll-free at
1-866-628-4282. TTD/TTY callers may call toll-free at 1-866-626-4282. More information about the Trade Act is also available at
www.doleta.gov/tradeact.
After you make your first payment for continuation coverage, you will be required to make monthly payments for each subsequent
coverage period. The monthly invoice indicates a grace period measured from the due date for each monthly premium during which
payment may be made. The grace period is defined by the group health plan (usually 30 days). As noted, Ceridian will send monthly
invoices for each coverage period. However, remember that you are responsible for paying the full premium on time even if you do not
get an invoice. If you make a periodic payment on or before the first day of the coverage period to which it applies (the due date), your
coverage under the Plan will continue for that coverage period without any break. Although periodic payments are due on the first day
of each coverage period, you will be given a grace period (usually 30 days) to make each periodic payment. The grace period is defined
by the group health plan. Your continuation coverage will be provided for each coverage period as long as payment for that coverage
period is made before the end of the grace period for that payment. However, if you pay a periodic payment later than the first day of
the coverage period to which it applies, but before the end of the grace period for the coverage period, your coverage under the Plan
may be suspended as of the first day of the coverage period and then retroactively reinstated (going back to the first day of the
coverage period) when the periodic payment is received. This means that any claim you submit for benefits while your coverage is
suspended may be denied and may have to be resubmitted once your coverage is reinstated.
Your first payment and all periodic payments for continuation coverage should be made payable to “Ceridian COBRA Services” and
should be sent to Ceridian. Include the name and Acct ID#/Social Security number of the person covered on each check. Monthly
invoices are sent approximately 10 days before the premium due date. If full payment is not timely made (see below) on or before each
grace period expiration date, coverage will be cancelled and you will lose all rights to continuation coverage under the Plan.
Note: Your premium is due on the “due date” shown on your invoice. If you wait until the end of the grace period to pay, you risk not
having sufficient time to correct errors which may or may not be within your control (such as unsigned checks, incorrect payment
amounts, premiums sent to the wrong address, or late/missed pickups by the U.S. Postal Service). In such cases, your coverage will be
cancelled with no possibility of reinstatement. For these reasons, we recommend that you send in your premium payment(s) prior to the
“due date.”
For more information about rights under ERISA, including COBRA, the Health Insurance Portability and Accountability Act (HIPAA), and
other laws affecting group health plans, can contact the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA)
in your area or visit the EBSA website.
If you have already made an election for COBRA and wish to apply for ARRA Premium Reduction, complete this form and
return it to: Ceridian COBRA Benefits Administration
3201 34th Street South
St. Petersburg, Florida 33711
You may also want to read the important information about your rights included in the “Summary of the COBRA Premium
Reduction Provisions Under ARRA.”
Name and mailing address (list any dependents on the back of this form) If you are a dependent, please provide employee SSN
Telephone number
*If you checked number 3, was individual eligible for, and given, the Additional Election Period described above?
Signature of employer, plan administrator, or other party responsible for COBRA administration for the Plan
a. _________________________________________________________________________
1. I elected (or am electing) COBRA continuation coverage.
Yesҏ
No
2. I am NOT eligible for other group health plan coverage.
Yesҏ
No
3. I am NOT eligible for Medicare.
Yesҏ
No
I make an election to exercise my right to the ARRA Premium Reduction. To the best of my knowledge and belief all of the answers I
have provided on this form are true and correct.
b. _________________________________________________________________________
1. I elected (or am electing) COBRA continuation coverage.
Yesҏ
No
2. I am NOT eligible for other group health plan coverage.
Yesҏ
No
3. I am NOT eligible for Medicare.
Yesҏ
No
I make an election to exercise my right to the ARRA Premium Reduction. To the best of my knowledge and belief all of the answers I
have provided on this form are true and correct.
c. _________________________________________________________________________
1. I elected (or am electing) COBRA continuation coverage.
Yesҏ
No
2. I am NOT eligible for other group health plan coverage.
Yesҏ
No
3. I am NOT eligible for Medicare.
Yesҏ
No
I make an election to exercise my right to the ARRA Premium Reduction. To the best of my knowledge and belief all of the answers I
have provided on this form are true and correct.
d. _________________________________________________________________________
1. I elected (or am electing) COBRA continuation coverage.
Yesҏ
No
2. I am NOT eligible for other group health plan coverage.
Yesҏ
No
3. I am NOT eligible for Medicare.
Yesҏ
No
I make an election to exercise my right to the ARRA Premium Reduction. To the best of my knowledge and belief all of the answers I
have provided on this form are true and correct.
Male
Female
Social Security # ___ ___ Date of Birth (mmddyyyy) Daytime Telephone # (include Area
Code)
COVERAGE ELECTION
You must enter all Coverage Type(s) you wish to elect. You can only elect coverage that was in effect at the time of your Qualifying Event. Election
of options not available to you will not be processed.
Other (EAP,
Individual
Individual + Spouse
Individual + Child(ren)
Individual + Spouse + Child(ren)
HRA, etc.)
FSA If you are/were enrolled in an FSA plan in the current plan year and wish to continue, please check the box.
The COBRA premium subsidy does not apply to a Healthcare Flexible Spending Account.
COBRA Coverage Effective Date
No Gap in Coverage (this option is available if within initial 60 day COBRA
GAP in Coverage (applies if not within initial 60 day election
election period and coverage terminated prior to 2/16/09). Pay the full COBRA period and coverage terminated prior to 2/16/09). Pay 35% of
premium retroactively until the Premium Reduction starts. Then pay 35% of COBRA premium for the coverage period on or after the
COBRA premium for the coverage period on or after the enactment date of enactment date of 2/17/09.
2/17/09.
DEPENDENTS
Coverage Type
Last Name First Name Relationship SSN (xxx-xx-xxx) Date of Birth
Med Den Vis RX Other
YOUR CERTIFICATION
I authorize the benefit election I have indicated above. I certify that I am electing only those coverages that were in effect on the day before the Qualifying
Event, and that I understand that I will no longer be eligible for COBRA continuation coverage if I become entitled to Medicare or become covered under
another group health plan that does not contain a limitation or exclusion due to a pre-existing condition. I further certify that all information is complete and
accurate to the best of my knowledge.
Your Signature Date
Return form to: Ceridian COBRA Services Center The completed Election Agreement must be sent by the
P.O. Box 534244 Election Expiration Date indicated in the “Important
St. Petersburg, Florida 33747-4244 Notice”.
COB4000/3/09
You Have Options ...
Questions? Call our Customer Service Center at the number indicated on your ,PSRUWDQW 1RWLFH
COBRA Premium Reduction - Frequently Asked Questions
About the Premium Reduction
1. How much is the The premium reduction is 65% of the total premium for which eligible individuals are responsible to
premium reduction? pay.
2. Because I received this No. Not everyone who receives this notice qualifies for the premium reduction. To determine if you
letter, does this mean I qualify for the premium reduction, review the guidelines and follow the steps provided in this package.
qualify for the premium
reduction? Ceridian has mailed this letter to all qualified beneficiaries who experienced a COBRA qualifying event
on or after September 1, 2008 and through December 31, 2009, but only those qualified beneficiaries
that originally lost coverage under the group health plan as a result of an involuntary termination within
the above dates may be eligible for premium reduction. The definition includes newborns or adopted
children of the former employee added during the period of COBRA coverage..
3. What plans are eligible The premium reduction applies to all COBRA eligible plans. This includes: Medical, Dental, Vision,
for the premium Prescription, HRA and EAP plans.
reduction?
Note: Flexible Spending Accounts (FSA) are not eligible for the premium reduction.
4. How long can I receive Your premium reduction can last up to 9 months. However, this reduction will end earlier if:
the premium reduction? x You become eligible for Medicare or another group health plan (such as a plan sponsored by a
new employer or a spouse’s employer),
x You reach the end of your maximum COBRA coverage period.
Note: See Question 10 for details on what to do if you become ineligible after qualifying.
About Qualifying
5. How much time do I have If you were previously offered COBRA, and did not elect or you elected and subsequently
to respond? cancelled, you have a special 60-day election period to elect the COBRA premium reduction.
However, you must meet the eligibility criteria. If you do not meet the eligibility criteria, you will be
denied COBRA continuation coverage.
If this is your first opportunity to elect COBRA, you have 60 days from the date we send you your
COBRA & ARRA Notification to elect COBRA coverage. If you are not qualified to receive the reduced
premium, you can still elect COBRA at the full cost of the plan.
6. What happens if I do not If you are receiving COBRA, Ceridian will continue to bill you as usual. If you are not receiving
respond? COBRA and do not want coverage, you do not need to respond.
7. I cancelled my COBRA You are eligible for the premium reduction program and may re-enroll in COBRA with the premium
coverage. Can I qualify reduction if you:
for the premium 1. Lost group health coverage because of involuntary termination on or after September 1, 2008
reduction? 2. Meet all eligibility criteria
After Qualifying
8. If I qualify, when can I x Ceridian will update invoices and accounts in approximately 30 days after receiving your certified
expect to receive the premium reduction information.
premium reduction and x Until the premium reduction appears on your invoice, you need to pay the full invoice.
any credit or x After the 30 days, Ceridian will credit (or reimburse if necessary) your account for overpayments.
reimbursement?
9. If I qualify, will I receive You will not receive credit or reimbursements of payments for coverage periods prior to February 17,
the premium reduction 2009. Ceridian will credit or reimburse those who qualify for the premium reduction. However, the
on payments I have premium reduction is applicable beginning with the first period of coverage after February 17, 2009
already made? (or generally, beginning with the March 1, 2009 COBRA premium).
10. How do I notify Ceridian Complete the Participant Notification of Ineligibility for Premium Reduction form on the back of this
if I become ineligible for form, if you are no longer eligible for the COBRA premium reduction. Mail the form to:
the COBRA premium
reduction? Ceridian COBRA Continuation Services
Attn: COBRA Benefits Administration
3201 34th Street South
St. Petersburg, Florida 33711
Note: Individuals paying reduced COBRA premiums must notify their plans if they become eligible for
coverage under another group health plan or Medicare. Failure to do so can result in a penalty of
110% of the subsidy actually received.
More information www.ceridian-benefits.com 800.877.7994 – the automated telephone system: Available 24/7
Call Center support: Monday to Friday - 8:00 AM to 8:00 PM ET
IMPORTANT
If you fail to notify your plan of becoming eligible for other group health plan coverage or Medicare AND continue to
pay reduced COBRA premiums you could be subject to a fine of 110% of the amount of the premium reduction.
Eligibility is determined regardless of whether you take or decline the other coverage.
However, eligibility for coverage does not include any time spent in a waiting period.
To the best of my knowledge and belief all of the answers I have provided on this Form are true and correct.
If you are eligible for coverage under another group health plan and that plan covers dependents you must also list their
names here:
_________________________________________ _________________________________________
_________________________________________ _________________________________________