HRMG Blog – Sage Abra Payroll, HR, & Timekeeping News

Following a group of other states, Pennsylvania Gov. Rendell signed into law Act 2 of 2009, also known as Mini-COBRA. This law extends health coverage to employees who work for companies under 20 employees.  Key provisions to this law:

• This law goes into effect July 10, 2009
• Applies to employers with less than twenty employees
• Provides benefit continuation coverage for a period of nine months
• Applies only to insured group major medical, hospital or surgical policies
• Permits an employer to charge up to 105% of the of the group rate of the insurance being continued
• Individuals who elect Pennsylvania Mini-COBRA may be eligible for American Recovery and Reinvestment Act (ARRA) premium assistance. This translates to a 65 percent reduction in COBRA premiums for a qualifying employee under the ARRA.
• This is a permanent law, unlike ARRA which expires December 31, 2009.

For more information on Mini-COBRA, visit the Insurance Department for the Commonweath of Pennsylvania

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The Healthy Families Act (HFA) has been introduced in the both the House (H.R. 2460) and Senate (S. 1152).  Sponsored by Representative Rosa DeLauro (D-CT) and Senator Edward Kennedy (D-MA), the bill would require employers with 15 or more employees to provide employees with up to 56 hours of paid sick leave. Leave would be accrued at one hour for every 30 hours worked.

Under the Act, paid sick time can be used for the employee’s own needs or to care for a child, parent, spouse, or any other blood relative. An employee begins accruing the sick leave at their start date and is able to begin using it after 60 days. The leave would not be able to be counted under an employer’s absence control or no-fault attendance policy.

While many Democrats and President Obama are for this Act, Republicans have voiced their opposition. SHRM has also spoken out against the Act, and you can read their position here.

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From Sage Abra Software and HRMG Solutions: http://www.hrmgsolutions.com/whitepapers/new-rules-for-cobra.pdf

The article contains several useful addresses for webcasts and information from the Department of Labor and the IRS

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