UE Local 506
Bulletin 5/17/21
Pennsylvania Extended Benefits (EB) Program Ends
The Extended Benefits
(EB) program will end in Pennsylvania, due to the
declining unemployment rate. The last payable week of Extended Benefits (EB) is
the week ending May 15, 2021.
Individuals who had
been collecting EB will transition back to federal Pandemic Emergency
Unemployment Compensation (PEUC). This transition will be automatic,
meaning claimants do not need to do anything to be moved from EB to
PEUC. Additionally, the change in program will not cause any changes in the
filing process or benefit amount.
History
Extended Benefits
(EB) were additional Unemployment Compensation benefits payable to qualified
workers when an “Extended Benefit Period” occurs in Pennsylvania. An
EB period begins following the third week after the unemployment rate reached a
certain level determined by law then triggers off after it falls below that
same level.
The most recent EB
period began May 3, 2020, but benefits were not payable until an individual had
exhausted PEUC benefits. Therefore, EB payments were only payable from
week ending July 4, 2020 through week ending May 15, 2021.
The EB weekly benefit rate
(WBR) was
the same as the rate payable to individuals on their qualifying regular
unemployment compensation claim, including dependents’ allowances (DA).
FAQS ABOUT COBRA PREMIUM ASSISTANCE UNDER THE AMERICAN
RESCUE PLAN ACT OF 2021
I have heard that the ARP included temporary COBRA
premium assistance to pay for health coverage. I would like more information.
The ARP provides temporary premium assistance for
COBRA continuation coverage for Assistance Eligible Individuals (see Q3 to
determine if you are eligible). COBRA allows certain people to extend
employment-based group health plan coverage, if they would otherwise lose the
coverage due to certain life events such as loss of a job. Individuals may be
eligible for premium assistance if they are eligible for and elect COBRA
continuation coverage because of their own or a family member’s reduction in
hours or an involuntary termination from employment. This premium assistance is
available for periods of coverage from April 1, 2021 through September 30,
2021. This premium assistance is generally available for continuation coverage
under the Federal COBRA provisions, as well as for group health insurance
coverage under comparable state continuation coverage (“mini-COBRA”) laws. If
you were offered Federal COBRA continuation coverage as a result of a reduction
in hours or an involuntary termination of employment, and you declined to take
COBRA continuation coverage at that time, or you elected Federal COBRA continuation
coverage and later discontinued it, you may have another opportunity to elect
COBRA continuation coverage and receive the premium assistance, if the maximum
period you would have been eligible for COBRA continuation coverage has not yet
expired (if COBRA continuation coverage had been elected or not discontinued).
Which
plans does the premium assistance apply to?
The COBRA premium assistance provisions apply to
all group health plans sponsored by private-sector employers or employee organizations
(unions) subject to the COBRA rules under the Employee Retirement Income
Security Act of 1974 (ERISA). They also apply to plans sponsored by State or
local governments subject to the continuation provisions under the Public
Health Service Act. The premium assistance is also available for group health
insurance required under state mini-COBRA laws.
How can I tell if I am eligible to receive the
COBRA premium assistance?
The ARP makes the premium assistance available for
“Assistance Eligible Individuals.” An Assistance Eligible Individual is a COBRA
qualified beneficiary who meets the following requirements during the period
from April 1, 2021 through September 30, 2021:
• Is eligible for COBRA continuation coverage by
reason of a qualifying event that is a reduction in hours (such as reduced
hours due to change in a business’s hours of operations, a change from
full-time to part-time status, taking of a temporary leave of absence, or an
individual’s participation in a lawful labor strike, as long as the individual
remains an employee at the time that hours are reduced) or an involuntary
termination of employment (not including a voluntary termination); and
• Elects COBRA continuation coverage. However, you
are not eligible for the premium assistance if you are eligible for other group
health coverage, such as through a new employer’s plan or a spouse’s plan (not
including excepted benefits, a qualified small employer health reimbursement
arrangement (QSEHRA), or a health flexible spending arrangement (FSA)), or if
you are eligible for Medicare. Note that if you have individual health
insurance coverage, like a plan through the Health Insurance Marketplace®2, or
if you have Medicaid, you may be eligible for ARP premium assistance.
However, if
you elect to enroll in COBRA continuation coverage with premium assistance, you
will no longer be eligible for a premium tax credit, advance payments of the
premium tax credit, or the health insurance tax credit for your health coverage
during that period. Note: If the employee’s termination of employment was for
gross misconduct, the employee and any dependents would not qualify for COBRA
continuation coverage or the premium assistance.
If I am
eligible for the premium assistance, how long will it last?
Your premium assistance can last from April 1, 2021
through September 30, 2021. However, it will end earlier if: • You become
eligible for another group health plan, such as a plan sponsored by a new
employer or a spouse’s employer (not including excepted benefits, a QSEHRA, or
a health FSA), or you become eligible for Medicare**, or • You reach the end of
your maximum COBRA continuation coverage period. If you continue your COBRA
continuation coverage after the premium assistance period, you may have to pay
the full amount of the premium otherwise due. Failure to do so may result in
your loss of COBRA continuation coverage. Contact your plan administrator,
employer sponsoring the plan, or health insurance issuer for more information.
When your COBRA premium assistance ends, you may be eligible for Medicaid or a
special enrollment period to enroll in coverage through the Health Insurance
Marketplace® or to enroll in individual market health insurance coverage
outside of the Marketplace. A special enrollment period is also available when
you reach the end of your maximum COBRA coverage period. You may apply for and,
if eligible, enroll in Medicaid coverage at any time. For more information, go
to: https://www.healthcare.gov/medicaid-chip/getting-medicaid-chip/.
**Individuals receiving the COBRA premium assistance must notify their plans if
they become eligible for coverage under another group health plan (not
including excepted benefits, a QSEHRA, or a health FSA), or for Medicare.
Failure to do so can result in a tax penalty.
Who is eligible for an additional election
opportunity for COBRA continuation coverage?
A qualified
beneficiary whose qualifying event was a reduction in hours or an involuntary
termination of employment prior to April 1, 2021 and who did not elect COBRA
continuation coverage when it was first offered prior to that date or who
elected COBRA continuation coverage but is no longer enrolled (for example, an
individual who dropped COBRA 2 Health Insurance Marketplace® is a registered
service mark of the U.S. Department of Health & Human Services. 4
continuation coverage because he or she was unable to continue paying the
premium) may have an additional election opportunity at this time. Individuals
eligible for this additional COBRA election period must receive a notice of
extended COBRA election period informing them of this opportunity. This notice
must be provided within 60 days of the first day of the first month beginning
after the date of the enactment of the ARP (so, by May 31, 2021) and individuals
have 60 days after the notice is provided to elect COBRA. However, this
additional election period does not extend the period of COBRA continuation
coverage beyond the original maximum period (generally 18 months from the
employee’s reduction in hours or involuntary termination). COBRA continuation
coverage with premium assistance elected in this additional election period
begins with the first period of coverage beginning on or after April 1, 2021.
Individuals can begin their coverage prospectively from the date of their
election, or, if an individual has a qualifying event on or before April 1st,
choose to start their coverage as of April 1st, even if the individual receives
an election notice and makes such election at a later date. In either case,
please note that the premium assistance is only available for periods of
coverage from April 1, 2021 through September 30,2021.
I am an Assistance Eligible Individual who has
been enrolled in COBRA continuation coverage since December 2020. Will I receive
a refund of the premiums that I have already paid?
No. The COBRA
premium assistance provisions in the ARP apply only to premiums for coverage
periods from April 1, 2021 through September 30, 2021. If you were eligible for
premium assistance, but paid in full for periods of COBRA continuation coverage
beginning on or after April 1, 2021 through September 30, 2021, you should
contact the plan administrator or employer sponsoring the plan to discuss a
credit against future payments (or a refund in certain circumstances.)
How
can I get more information on my eligibility for COBRA continuation coverage or
the premium assistance, including help if my employer has denied my request for
the premium assistance?
For group health plans sponsored by private-sector employers,
guidance and other information is available on the DOL web site at
https://www.dol.gov/cobra-subsidy. You can also contact one of EBSA’s Benefits
Advisors at askebsa.dol.gov or 1.866.444.3272. EBSA’s Benefits Advisors may
also be able to assist if you feel that your plan or employer has improperly
denied your request for treatment as an Assistance Eligible Individual.
Employers and plans may be subject to an excise tax under the Internal Revenue Code
for failing to satisfy the COBRA continuation coverage requirements. This tax
could be as much as $100 per qualified beneficiary, but not more than $200 per
family, for each day that the plan or employer is in violation of the COBRA
rules. If you feel you may have been improperly denied premium assistance,
contact EBSA at askebsa.dol.gov or 1.866.444.3272.
Mask Policy
Update
Mask mandates are changing, and the guidance
provided has created more questions than answers. The union inquired with the company
to understand exactly how these changes will impact Wabtec’s mask policy. Union
Relations informed us that the EHS team is working with the Erie County Health
Department to understand what changes are necessary. The
company expects to have proper guidance by Wednesday, May 19. We will continue
to keep you informed of any additional information as it becomes
available.
