14 July 2009

COBRA PREMIUM REDUCTION - ATTENTION EARLY OUT & 55 POINT PARTICIPANTS

Recent developments regarding Cobra premium reduction information were announced on July 7th to all NW/DL pilots and we received the information about this from our union brothers and sisters at ALPA.  We contacted Inflight Services this week to inquire about this important information and they stated they plan to send out an announcement to all flight attendants at the new Delta as well.  In the meantime, please share this information with your colleagues and friends that have participated in the recent Early Out/55 Point Programs.

The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months.

Premium Reduction:  The premium reduction for COBRA continuation coverage is available to "assistance eligible individuals".  An "assistance eligible individual" is the employee or a member of his/her family who:

~          is eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009;

~          elects COBRA coverage;

~          is eligible for COBRA as a result of the employee's involuntary termination between September 1,   2008 and December 31, 2009

~          is not eligible for Medicare coverage or another group health plan (for instance, through a spouse’s employer)

~          has income less than $145,000 (single filers) or less than $290,000 (joint filers) (the subsidy is reduced for single filers with income from $125,000 to $145,000 and for joint filers with income from $250,000 to $290,000)

In a recent ruling, the Department of Labor (DOL) has determined that ground and flight attendant employees who took the voluntary Early Out Programs offered to them earlier this year are considered to have been involuntary terminated from employment for the purposes of the criteria listed above.  If a flight attendant qualifies for the subsidy and elects COBRA coverage, he or she would pay only 35% of the cost of the coverage for the six months following the three months of company paid coverage (assuming the flight attendant continues to meet the subsidy’s eligibility criteria during that time). 

For more information regarding the COBRA ARRA subsidy, please click HERE.  Delta/Northwest Plan Administrators are required to send a COBRA notice outlining these new benefits for affected flight attendants.  If you have not received this information, please contact the Northwest Benefits Department to ask about the premium reduction.