♦ Public Presenter Series

A new series developed to focus on the exchange of information by and between government officials and Chamber members.  The series will invite governmental officials to speak to members on key topics that affect the business community.  A new speaker and topic will be scheduled for each session. 

2010 Public Presenter Schedule

Schedule to be announced.
 

IMPORTANT ISSUES

♦ Michelle’s Law: New Mandate on Dependent Student Eligibility

On October 9, 2008, a new federal law was enacted that provides for continuation of dependent coverage for students who would otherwise lose eligibility because of a reduction in their full-time class status or a medically necessary leave of absence from school.  The law, known as Michelle’s Law, applies to almost all group health plans (fully insured and self-insured) that cover dependents and use student status to determine eligibility.

For benefits plan years starting on or after October 9, 2009, the new law prohibits a group health plan from terminating a college student’s health coverage on the basis of the child taking a medically necessary leave of absence from school or changing to part-time status.  For plans that run on a calendar-year basis, this law becomes effective January 1, 2010.

The following requirements must exist in order for this provision to apply:

• The leave of absence or reduction in hours must be medically necessary and must commence while the eligible student is suffering from a serious illness or injury and would otherwise lose coverage under the plan;
• The student must have been enrolled in the group health plan before the first day of the leave;
• There must be written certification by the student’s physician indicating that the student is suffering from a serious illness or injury that necessitates the leave or change in enrollment status.

The coverage under Michelle’s Law must be extended for at least one year; however, coverage may end earlier for certain reasons (i.e. the student aging out of the plan as a result of exceeding the plan’s normal dependent-eligibility age).

There are certain questions that do not have answers as of today.  For example, the law does not indicate who is responsible for paying the cost of coverage extended via Michelle’s Law.  The legislation does not specifically indicate that the employer is required to absorb the additional premiums as a result of the extension of coverage.  In addition, the new law does not describe how it will integrate with COBRA coverage and if the continuation can be credited toward COBRA coverage.

We will share additional information regarding Michelle’s Law as it becomes available. 

♦ Mini Cobra Legislation

Governor Rendell has signed a new bill that will affect small and large businesses.  Please review this important information to learn how Act 2 of 2009 will impact your business.  

On June 10, 2009 the state’s Mini COBRA legislation was signed into law.  Employers who employ 2 to19 employees are now required to offer health insurance continuation post employment and are obligated to comply with the Federal subsidy of COBRA under the American Recovery and Reinvestment Act (ARRA). 

Highlights of the Mini COBRA legislation are as follows:

• Employers who employ 2 to19 employees who offer healthcare benefits must comply;
• The law was signed June 10, 2009 and went into effect July 10, 2009;
• An enrollee must have been insured through the employer for a minimum of three (3) months prior to the qualifying event;
• An enrollee must not be eligible for Medicare and not covered by other private health insurance;
• Mini COBRA qualifying events are the same as those under Federal COBRA regulations (qualifying events include termination of employment, divorce, death, ceasing to be a dependent, etc.);
• Mini COBRA benefits may continue for a maximum of nine (9) months;
• Employers/Administrators may charge up to 105% of the medical premium to COBRA enrollees;
• If an enrollee qualifies under the federal stimulus law, they may receive a 65% premium reduction.*

* If an enrollee is eligible for premium assistance, they are required to notify the plan when they become eligible for Medicare or other group coverage or they could be subject to a penalty of 110% of any premium assistance received.

NOTE: If an enrollee ends up earning more than $125,000 ($250,000 for a married couple filing a joint tax return) over the course of the year, any premium assistance will be recaptured by an increase in their tax liability. To avoid tax consequence, an enrollee may delay electing, or permanently waive premium assistance if they think they might earn this amount.

For additional information, please visit the Pennsylvania Insurance Department’s website at www.ins.state.pa.us.

♦ Health Insurance Coverage for Adult Children

Governor Rendell has signed a new bill that will affect all businesses.  Please review this important information to learn how Act 4 of 2009 will impact your business.  

Eligible children can continue to be covered under their parent’s health insurance plan beyond the age of 19.  The new law allows eligible adult children to remain covered until the age of 30.  Eligible adult children must meet the following criteria:

• They are unmarried
• They have no dependents
• They are a resident of Pennsylvania or they are enrolled as a full-time student in an institution of higher education
• They are not provided with private insurance or enrolled in (or eligible for) government benefits

The law applies to new health contracts and renewals occurring 180 days (6 months) after June 10, 2009 and then on a rolling basis as contracts are made or renewed.  For example, since the law was signed in June 2009, if a policy is issued or renewed in January 2010 the provisions will take effect with the January 2010 issuance or renewal.

While this coverage expansion provision must be included in all insurance contracts issued in the state of Pennsylvania, employers have the option to choose whether or not to extend the coverage to the dependents of their employees.

♦ The Employee Free Choice Act (EFCA)

An important issue that will adversely affect all of our members will soon be re-introduced in the U.S. Congress. The "Employee Free Choice Act," also known as "Card Check," proposes a rewrite of national labor relations laws.

Big labor unions spent $450 million in the 2008 elections.  What do they expect from this massive investment?  The answer is simple:  scrapping the federal law that protects both small businesses and workers during union organizing drives. 

Under current law, the decision of whether or not to form a union is usually left to the workers - through a secret ballot election.  That means that workers can choose - in private - whether they want to join a union.  But in such an election, workers might not vote the “right” way.  So unions have decided to get rid of secret ballot elections by convincing Congress to pass legislation falsely advertised as the Employee Free Choice Act, better known as Card Check.

Under Card Check, union organizers would be free to “persuade” workers to publicly sign a card stating that they support the union.  Union organizers could ask workers to sign a card just about anywhere - in the parking lot after work, at a restaurant, even at home.  Once more than 50% sign cards, workers would be stuck with the union - no more debate and no secret ballot election.
Because unions would know who has signed a card, workers would be exposed to unrelenting pressure and coercion.  Exposing workers to this harassment may seem unfair, but the goal of this legislation isn’t fairness - it’s getting workers to sign cards and begin paying union dues.

Card Check would effectively eliminate the private ballot process for union organizing and replace it with a card check system under which employees would simply sign a card to form a union, a very public process that would lead to employee intimidation and coercion. The bill would also mandate government binding arbitration if the employer and the union do not reach a contract agreement within 120 days of the union being formed. The provisions of the contract would be binding for at least two years.  Finally, the bill would place significant penalties - up to $20,000 per violation - only on employers. Card Check would apply to all employers in the nation regardless of their size or industry.

The Chamber will follow up with additional information on this matter. 

If you have questions, please contact your local representative.   Find your local representatives by visiting:  www.legis.state.pa.us