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How are Benefits Affected During the Reduction in Force?

How are Benefits Affected During the Reduction in Force?. Benefits termination dates. Benefits terminate on the last day of the month in which you last work. For most employees, this will be May 31, 2009.

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How are Benefits Affected During the Reduction in Force?

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  1. How are Benefits Affected During the Reduction in Force?

  2. Benefits termination dates • Benefits terminate on the last day of the month in which you last work. • For most employees, this will be May 31, 2009. • If you have pre-paid for summer benefits, for example for dependent coverage, a refund will be issued. • In most cases, premium deductions for dependent coverage will be adjusted down in May, and a refund will be issued for the balance.

  3. COBRA Continuation Coverage • Medical, dental, vision, flexible spending accounts, and Employee Assistance Program benefits may be extended through the purchase of COBRA continuation coverage. • Continuation at the current level of coverage is available for up to eighteen (18) months.

  4. COBRA Premium Reduction Subsidy • The American Recovery and Reinvestment Act of 2009 (ARRA) provides for a premium reduction for health benefits under COBRA. • Individuals who lose coverage due to an involuntary termination of employment pay only 35 percent of the COBRA premium. • This reduction in premium lasts for up to 9-months.

  5. 2008/2009 COBRA Premiums for Medical Insurance

  6. 2008/2009 COBRA Premiums for Dental Insurance

  7. 2008/2009 COBRA Premiums for Vision Insurance

  8. 2008/2009 Discounted COBRA Premiums Add up the coverage’s you have to calculate the cost of continuing benefits through COBRA. For example the employee only cost of the medical EPO, dental EPO, and vision is $144.13 + $3.17 + $1.13 = $148.42 per month.

  9. Discovery Benefits, Inc. (DBI) • The COBRA election packet will be sent to your home by Discovery Benefits, Inc. (DBI). If you do not receive the election packet, call DBI directly at (866) 451-3399. • Premium payment is made directly to DBI. Discovery Benefits, Inc. PO Box 869 Fargo, ND 58107-0869

  10. COBRA Timelines • The COBRA packet will be sent to your home within 14-days of notification to DBI. • You have 60-days to elect coverage from the notification date. • You have 45-days to pay the premium from the election date. • You may purchase up to 18-months of coverage. • Your premium discount will last up to 9-months. • Premium is paid on a month-to-month basis, and is due on the 1st day of the month for which you are paying. • A grace period is allowed to the last day of the month before benefits are terminated for non-payment. For example June premium must be paid by June 30, 2009.

  11. Avoiding Common COBRA Pitfalls • The #1 reason COBRA benefits are terminated is for non-payment of premium. • Once payment is late, you forfeit your COBRA rights. • If you have a lapse in coverage of more than 63-days, you may be subject to pre-existing condition exclusions. • The first payment to DBI must be made by check, and can not be made by electronic funds transfer (EFT). • The second payment can then by automatically withdrawn by EFT payment out of your checking account.

  12. Life Insurance Continuation • Continuation at the current level of coverage is available. • Employees will have the option of converting their group life insurance to an individual policy through the insurance carrier at offered rates. • Application forms and details are available through Employee Benefits by calling (480) 472-7222.

  13. Employee Assistance Program • Any individual who is affected by a reduction in force will continue to be eligible to utilize the EAP services up to two months following his/her final paycheck. • EAP counselors are able to speak with you confidentially about many mental health and substance abuse issues, such as family and personal issues, anger management, stress, grief and bereavement, child or domestic abuse, alcohol or substance abuse, crisis intervention counseling and group therapy sessions. • Contact Behavioral Health Services can be reached at 800-222-8335.

  14. Benefits Coverage Upon Return • If you secure a benefits eligible position within the district within thirty 30 days, you will placed in the same benefit elections as you had before your termination. • Participation will be effective the first of the month following such election, and no lapse in coverage or pre-existing exclusions will apply. • If you return to work in a benefits–eligible position more than 30 days following the termination date you must follow the initial enrollment provisions of the Plan. • Pre-existing exclusions will apply if COBRA coverage is not purchased, and there is a lapse of more than 63-days.

  15. Questions? • Any employee affected by the reduction in force with additional questions is encouraged to contact Employee Benefits at (480) 472-7222.

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