COBRA - Is Your Company in Compliance?
In May of 2004 the U.S. Department of Labor issued its final rules implementing the notice requirements for COBRA health care continuation coverage. Sample model notices can be found on the DOL's website. We encourage you to visit the site to be sure that your company is using Cobra notices that are in compliance with the final rules. Please visit:
www.dol.gov/ebsa/compliance_assistance.html#section2
The DOL also offers periodic free seminars to assist employers in complying with HIPAA and other employee benefit laws. Additional details may be found on the website.
Setback for Flexible Spending Accounts
Flexible Spending Accounts (FSAs) are a popular way for employees to set aside monies on a pre-tax basis to pay for unreimbursed healthcare expenses throughout the year. Many employees though, are reluctant to enroll in an FSA on account of the "use-it-or-lose it" rule that requires any unused funds be forfeited at the end of the plan year.
Treasury Secretary John Snow recently rejected a request by the chairman of the Senate Finance Committee to modify the current rule to allow the roll-over of unused funds into the next plan year. According to Mr. Snow the Treasury Department will continue to look for "creative solutions" to the current rule but at least for now, it's still "use-it-or-lose-it".
Oxford/UnitedHealthcare Consolidation
The following information is of interest to our customers in the NY/NJ/CT Tri-state area who offer benefits through UnitedHealthcare or Oxford Health Plans. (United Healthcare plans outside of this area are not affected by the following information.)
As you may know, UnitedHealthcare and Oxford Health Plans are in the process of consolidating. Following are the most current updates on the consolidation:
- Effective January 1, 2005, Oxford’s pharmacy program has been merged with the United Healthcare program. Oxford has transitioned to the UHC prescription drug list that will affect the tier placement of certain drugs. The new Prescription Drug List can be viewed at www.oxfordhealth.com. Please note that Oxford notified members directly if they had previously filled a prescription for a drug that was affected by the change.
- Effective June 30, 2005, United Healthcare will be removing its' small group HMO products from the New York and New Jersey small group markets. All United Healthcare July 1 renewals will be presented with new, similar plan options through Oxford Health Plans.
Quick Fact Corner
According to the 2004 Employer Health Benefit Survey conducted by the Kaiser Family Foundation “12% of employers offering coverage vary the amount that an employee must pay for family coverage depending on whether the family member has access to coverage from another source”. The survey was conducted based on a random selection of 3,017 employers nationwide.
Test Your Benefits Knowledge
Under what circumstances may an employee qualify for more than 18 months of COBRA continuation coverage?
(Check out the next edition of ThescoConnection for the answer!)