On December 21, 2009, President Barack Obama signed into law (as part of the 2010 appropriations bill for the Defense Department), an extension to the subsidy for COBRA created by the American Recovery and Reinvestment Act (ARRA). The legislation extended the period during which involuntary terminations would trigger subsidy eligibility, as well as expanding the duration of the subsidy. Employers and plan administrators also will face new notice and administrative requirements to implement the subsidy extension on a retroactive basis. Below are a few of the highlights.

First, the Act expands the maximum subsidy period from nine months to fifteen months, including individuals currently receiving subsidized COBRA coverage.

Next, the Act extends the period during which a COBRA-qualifying event resulting from an involuntary termination of employment can trigger eligibility for the subsidy, extending the end of that period from December 31, 2009, to February 28, 2010.

The Act resolves a thorny issue created by the language of the ARRA regarding eligibility for the subsidy. Originally, the ARRA required that both the qualifying event and the beginning of the COBRA coverage period occur on or before December 31, 2009, for an individual to be eligible for the subsidy. This meant that individuals whose employment terminated in December and coverage expired on December 31, but whose COBRA coverage commenced on January 1, would not have been eligible. The Act changes this by conditioning subsidy eligibility solely on the timing of the qualifying event, which is the event causing the loss of coverage. Assistance-eligible individuals who experience an involuntary termination (a qualifying event) on or before February 28, 2010 would be eligible for the subsidy (even if their COBRA coverage would not start until March).

The Act also protects individuals who, before the Act, exhausted their nine months of subsidized COBRA coverage and then did not continue coverage by paying full COBRA premiums. Under a transition period, those individuals would be able to pay those premiums retroactively if they do so by a certain date-the later of February 19, 2010, or 30 days from receipt of a new required notice.

For those assistance-eligible individuals who exhausted their nine-month subsidy but continued to pay the full COBRA premium in order to keep coverage in place, the amendment allows employers to apply the same refund or crediting rules that were in the ARRA.

Plan administrators are required to issue a notice describing the new subsidy rules to all individuals who were or are assistance-eligible individuals on or after October 31, 2009, or who are terminated from employment on or after October 31, 2009. In addition, the Act requires special notice to those assistance-eligible individuals who either dropped COBRA or paid the full premium for it when their nine-month subsidy ended, explaining that they are now eligible either to reinstate their coverage retroactively at the subsidized rate or to receive a credit or refund if they paid more than the Act would have required. For more information visit www.dol.gov/ebsa/COBRA.html. 
 

The following was initially reported by the law firm of Ogletree Deakins. 

Starting on January 1, a failure to comply with a new requirement for reporting to Medicare payments to Medicare-eligible individuals for resolution of claims involving medical expenses could cost the payor $1,000 per day in penalties for noncompliance.

Medicare is a government-funded health insurance program primarily for individuals age 65 or older. However, Medicare is not intended to be the primary insurance coverage for such individuals where there are other funds available to pay for the medical treatment (i.e., Medicare is a "secondary payer").

In response to increasing costs and funding concerns for Medicare, Congress passed the "Medicare, Medicaid and SCHIP Extension Act of 2007" (MMSEA) which President George W. Bush signed into law on December 29, 2007. See 42 U.S.C. § 1395y(b). The purpose of the Act is to enable Medicare to determine when its beneficiaries have received payment or reimbursement for medical expenses which Medicare could recoup.

What Is Required?

Section 1395y(b)(7) of the Act requires a "Responsible Reporting Entity" (RRE) to register with the Centers for Medicare and Medicaid Services (CMS) Coordination of Benefits Contractor (COBC) and electronically file certain information on third-party claims that involve payments to Medicare-eligible claimants. This information includes identifying information about the individual (including his or her social security number) and the amount paid to the individual to resolve all or part of a claim for medical expenses. The payment is referred to as the Total Payment Obligation to Claimant (TPOC).

An RRE can be any entity that is self-insured for all or part of a particular claim involving medical expenses. Where the claimant is a Medicare beneficiary and either (i) the claimant has made a claim for medical expenses or (ii) the claim results in a settlement, judgment, award, or other payment to the Medicare beneficiary that resolves claims for medical expenses, the RRE must make a report on the payment to the COBC.

Why Is This Important for Employers?

The problem is this: any employer that is self-insured for all or part of any claim for medical expenses (i.e., personal injury claims, which can include claims for discrimination or harassment) can be an RRE and thus subject to the reporting requirement. Why is this important?  Effective January 1, 2010, an RRE that fails to properly report to the COBC a covered payment to a Medicare-eligible claimant will be subject to a civil penalty of $1,000 for each day it fails to report the payment.

Group health plan insurers and third-party administrators of self-funded group health plans were required to begin providing information to CMS on certain individuals entitled to Medicare benefits in 2008. However, there are situations in which employers may also qualify as RREs. On and after January 1, 2010, where an employer is fully or partially (e.g., a deductible) self-insured for tort or employment claims potentially involving personal injuries to a Medicare-eligible claimant, payments by the employer to such a claimant must be reported to the COBC.  (emphasis added)

What Should Employers Do?

1.  Employers should consult with their insurance carriers and the attorneys handling their insured liability claims to ensure that preparations have been made to report information on TPOC payments made on or after January 1, 2010.

2.  Employers should examine their claims history and determine if any claims or demands could be made against their company for personal injury, including claims for harassment or discrimination, for which the company would be self-insured for all or part of a claim. This includes deductibles on Employment Practices Liability Insurance (EPLI) policies.

     a. If "yes," the employer should register with the COBC to begin the process of filing claim information.

     b. If "no," the employer should stay on alert for such claims and consider registering with the COBC in case it is obligated to report a covered payment in the future.

3.  For claims pending against a company for which the company may be required to make a payment to the claimant, the company should determine if the individual making a claim is a Medicare beneficiary. (Note: as an individual's Medicare status can change during the course of litigation, such an inquiry should be made at the beginning of the litigation and at the time of a final payment to the claimant, at a minimum. Inquiries about a claimant's Medicare status can be made (i) to the claimant, and (ii) through the COBC by entities registered to report TPOC payments.

4.  When a Medicare-eligible claimant has made a claim for personal injury/medical expenses at any time during a dispute, or when a payment is made to such a claimant settling a claim for medicals or any personal injury, the payment should be reported promptly to the COBC.

Visit the COBC website  at www.Section111.cms.hhs.gov. The CMS User Guide for MMSEA reporting can be found here.

The IRS, the Department of Labor (DOL), the EEOC, state agencies, and trial lawyers have put employers on notice: wage and hour issues are a "significant problem with adverse consequences" and it is increasingly likely that organizations will be audited and their pay practices and decisions will be assessed. Plus, Labor Secretary Hilda Solis announced in November that the agency recently hired 250 additional wage/hour inspectors.

From the DOL's perspective, the particular concerns include the proper classification of employees and independent contractors, the proper treatment of exempt and nonexempt employees, the proper calculation of "regular wages," and pay equity. As a result, organ-izations must take proactive measures to not only prevent FLSA violations, but also to demonstrate compliance through effective governance practices, including internal audits.

This webinar discusses your wage and hour liability exposure, critical compliance and management issues, and effective internal auditing practices. 

This webinar provides attendees with actionable information to reduce their organization's exposure to wage and hour claims and provides them with material from the ELLA Wage and Hour HR Audit Work-sheet^TM.

Our speaker will be Ronald Adler.  Mr. Adler is President and CEO of Laurdan Associates, Inc., a veteran-owned, human resource man-agement consulting firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR-business issues and unemployment insurance issues. 

When: January 19, 2010, 1:00-3:30 PM EST.

Cost:  Free to Printing Industries of America Members; $199 for non-members

To register see www.printing.org/events.

Immigration and Customs Enforcement (ICE) has issued a Form I-9 Inspection Overview for stakeholders on the agency's Form I-9 audit process and its civil monetary penalty schedule. ICE's Worksite Enforcement Unit released in November, the same day that ICE Assistant Secretary John Morton announced that the agency issued Notices of Inspection (NOIs) to 1,000 employers across the country associated with critical infrastructure.

All U.S. employers must complete and retain a Form I-9 for each individual they hire for employment in the United States after November 6, 1986. This includes citizens and noncitizens. On the form, the employer must examine the employment eligibility and identity document(s) an employee presents to determine whether the document(s) reasonably appear to be genuine and relate to the individual and record the document information on the Form I-9. Employers are required by law to maintain for inspection original Form I-9s and supporting documentation for all current employees. In the case of former employees, retention of the Form I-9 is required for a period of three years from the date of hire or for one year after the employee is discharged, whichever is longer.

The I-9 audit process is initiated when ICE issues an NOI to an employer. According to the overview, the NOI compels an employer to produce, typically within three business days, its I-9s, along with other documentation, such as payroll records, a list of current employees, articles of incorporation, and business licenses.

When technical or procedural violations are found, an employer is given ten business days to make corrections. According to the overview, a "Notice of Intent to Fine" (NIF) may be issued for all substantive and uncorrected technical violations. If ICE determines that an employer has knowingly hired or continued to employ undocumented workers, that employer will likely be given an NIF, and, in certain situations, prosecuted criminally. In addition, an employer found to have knowingly hired or continued to employ undocumented workers may be subject to debarment by ICE, meaning that the employer will be prevented from participating in future federal contracts and from receiving other government benefits.

Penalties. Monetary penalties assessed by ICE from an I-9 audit can be substantial, depending on the type of violations listed in the NIF. According to the civil monetary penalty schedule, fines for knowingly hiring and continuing to employ undocumented workers range from $375 to $16,000 per violation, with repeat offenders receiving penalties at the higher end. Penalties for substantive and uncorrected paperwork violations, including failing to produce a Form I-9, range from $110 to $1,100.

If you have questions on I-9s or receive a notice of a pending inspection, let us know at HRQuestions@printing.org.

Sample organizational charts from printers across the country.  See Org Charts.  Want to submit your organizational chart?  Send it to HRQuestions@printing.org.

2009 Best Workplace in the Americas winners had an average Poor Quality Hire Rate of 13.7 percent (i.e., involuntary or voluntary turnover within first 3 months of hire). The median was 10.3 percent.  For more information on quality recruiting and selection visit www.printing.org/page/3909.

The Internal Revenue Service recently issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be 50 cents per mile for business miles driven. For more information visit IRS News Release No. IR-2009-111, Dec. 3, 2009.

Mark your calendar! This year's National Environmental, Health and Safety Conference will be March 15-17 in Indianapolis. General Session topics include the following:

• Environmental Marketing
• Impact of Health Care Reform on the graphic communications industry
• Customer Panel
• SGP Certified Printer Panel

All of our other current publications can be found on our website. If you are interested in purchasing one of the titles below, simply click on the hyperlinked title or contact our bookstore by phone and identify your preferred title by its item number.

Printing Sales Contracts: Samples from the Industry
Non-Member: $160.00; Member: $80.00
Item No: 1829

2007 Best Practices of the Best Workplaces in the Americas
Non-Member: $160.00; Member: $80.00
Item No: 18277

2006 Best Practices of the Best Workplaces in the Americas
Non-Member: $160.00; Member: $80.00
Item No: 1827

Incentive, Bonus, and Recognition Plans: Samples from the Industry
Non-Member: $149.00 ; Member: $99.00
Item No: 1823

Sales Compensation and Incentive Plans: Samples from the Industry
Non-Member: $149.00 ; Member: $99.00
Item No: 1730

Sample Union Contract Language Manual
Non-Member: $160.00; Member: $80.00
Item No: 1824

Becoming Union Free
Non-Member: $40.00; Member: $30.00
Item No: 1939

Strike Preparation Manual
Non-Member: $100.00; Member: $80.00
Item No: 1828

Customer Satisfaction Surveys: Samples from the Industry
Non-Member: $60.00; Member: $30.00
Item No: 1861

Coming Soon: 2008 Best Practices of the Best Workplaces in America

Say "thanks" and recognize their skills, efforts, and devotion during Press Operators Week, January 17-23, 2010. Press Operators Week was created a few years back by Printing Industries' Employee Recognition Program (ERP) and is in conjunction with Printing Week. 

The ERP program has a 50-plus-year tradition and has recognized tens of thousands of employees in the printing industry at thousands of firms. Printing Industries members can order our ERP certificates, or see a list of recognition ideas that other printers have used.  For more information and to order, visit www.printing.org/page/2942 or call 202-730-7968.

Week of January 17-23: Press Operators, Assistants and Helpers Week (in conjunction with Printing Week)

Week of March 1-6: Prepress Week (coincides with the anniversary of the introduction of the first PostScript Laser Printer, the Apple LaserWriter)

Week of April 18-24: Administrative Professionals Week (In conjunction with Administrative Professionals Day)

Week of May 14-20: Shipping/Receiving/Drivers Week (in conjunction with National Transportation Week)

Week of July 25-31: Mailers Week (in conjunction with the anniversary of the creation of the U.S. Postal Service)

Week of October 3-9: Customer Service Representatives Week (in conjunction with Customer Service Week)

Week of October 3-9: Bindery Week (coincides with the anniversary of the first patented folder)

Please visit our website for more information about these weeks.

Get the most up-to-date information on HR issues for the printing industry. Follow us on Twitter at printHR. Join us on Facebook: Jim Kyger Work

Find top-quality talent using the Printing Industries of America Job Bank, the largest online job board specifically for the printing and graphic art industry.

For more information on articles in the update, please contact Jim Kyger (JKyger@printing.org) at 202-730-7968.