Travis Software Official Blog

Travis is currently working to add a new Qualifying Event entitled “HCTC/VEBA Eligibility.” This Qualifying Event includes a 72.5% subsidy that is automatically applied and expires at the end of 2013.

A court recently approved the creation of an “Auto Retiree VEBA Trust,” which is a Voluntary Employees’ Beneficiary Association designed to provide health benefits to eligible retired auto workers. A VEBA provides a way for employers to make a one-time contribution and satisfy the health liabilities of retirees. This VEBA is unique in that it is not tied to any one employer, but covers regional eligible retirees in the auto industry.

As the end of the availability of ARRA premium subsidy approaches, certain assistance eligible individuals have already or will soon be coming off of their 15-month period of federal government subsidy. Though not required under COBRA, both WebCOBRA and TravisCobra systems include an “ARRA Subsidy Termination Notice” that automatically generates thirty (30) days prior to the last day that a participant is eligible for the subsidy. In this post, you will find helpful information on administering COBRA to qualified beneficiaries who are transitioning from a subsidized coverage period to a normal COBRA coverage period.

On April 15, 2010, Congress passed and the President later signed the Continuing Extension Act of 2010 (the “Act”) that extended to May 31, 2010 the eligibility for the 65% premium subsidy for COBRA premiums for individuals that incur an involuntary termination of employment on or before that date. Prior to this Act, the eligibility time period for the COBRA premium subsidy expired on March 31, 2010. This Act modifies the American Recovery and Reinvestment Act of 2009 (ARRA), which was amended by the Temporary Extension Act of 2010 earlier this year.

Travis Software Corp. is working now on updates to both WebCOBRA On Demand and TravisCobra^TM to help you meet the requirements of this new law.

[Updated 4/26/2010] We plan to have the new release of TravisCobra^TM delivered to TravisCobra^TM Users on Tuesday, April 27, 2010. The new release of WebCOBRA On Demand will be implemented and available to WebCOBRA On Demand Users by Thursday, April 29, 2010 at 8:00 a.m. Additional testing was required for these updates to include the new ability to access and edit the ARRA Summary Letter and Request Form (as published by the DOL).

On March 2, 1010, the American Recovery and Reinvestment Act of 2009 (“ARRA”) was amended by the Temporary Extension Act of 2010 (H.R. 4691) (the “Act”) which, among other things, extends eligibility for the COBRA premium subsidy through March 31, 2010. The Act also includes a measure that extends premium assistance to eligible individuals that had or have a reduction of hours between September 1, 2008 and March 31, 2010 but did not elect COBRA coverage due to that qualifying event, and that later incur an involuntary termination of employment on or after March 2, 2010. Plan Administrators have new election period and notice responsibilities for such individuals.

Now that the Department of Defense Appropriation Act, 2010 DODAA, 2010, or H.R. 3326)has passed the Senate, Congress has given a Christmas gift to several hundred thousand existing COBRA qualifying beneficiaries and to others who lose their coverage during the first two months of 2010. An extension of the 65% ARRA subsidy of COBRA premiums from nine to fifteen months, and possible eligibility for the subsidy to those who have COBRA qualifying events of termination through February 28, 2010.