How the stimulus package will affect COBRA?

Pfizer said it would cut 8000. Sprint/Nextel cut 8,000. Home Depot cut 7000. Since October 2008. "22 of the 30 companies that are part of the Dow Jones industrial average have announced job cuts since the economy took a nosedive in October." (Washington Post, Layoffs CutDeeper Into Economy As Recession Hits Most Industries, CorporateGiants Slash Jobs, by Annys Shin and Neil Irwin, January 27, 2009.) Companies are struggling to stay afloat and their alternative to going under is to get rid of their most valuable asset: their employees. But the strain is not only on the employer, it affects the millions of employees who have or will be laid off from their jobs. Being laid off adds an insurmountable strain to an individual's ability to make mortgage payments, pay their credit card bills, and care for their loved ones by providing health insurance to their families.

The recent stimulus bill signed into law (also known as the American Recovery and Reinvestment Act) by President Barack Obama will help employees who were involuntarily terminated afford health care for themselves and their families. Before this bill was signed into law, employers were required to provide continuation of an employee's health benefit throught the federal law called the Consolidated Omnibus Budge Reconciliation Act (COBRA). COBRA required companies to continue offering health insurance coverage to their covered employees, spouses, and dependents in certain situations when a loss of coverage occurs. Employers did not have to cover the entire cost of coverage; therefore most employees paid for the premium in addition to the administration fee of 2% bringing the total to 102% of the cost.

This new bill adds some relief to the 102% payment that some of the eligible employees would have to pay. Simply put, an employee who is involuntarily terminated by their employer is now eligible to receive a government subsidy of 65%, which means that after the employee pays the ~2% administration fee they are only left to pay about 35% of the cost of continuation of their health coverage with their company. When will this begin? This subsidy begins on or after February 17, 2009. How long will it last? The government subsidy is set to last for 9 months. Who does it cover? Only employees that were involuntarily terminated from their jobs. (There is no subsidy for voluntary terms, employees that make over 125,000 single/250,000 couple) However, the subsidy for eligible involuntarily terminated employees will end earlier if the employee signs up for health insurance with a new company, if they are eligible for Medicare, if they do not make the payments, and if the COBRA maximum period ends.

ROLE of the employer:
Employers need to get moving on this. They need to identify which employees were involuntarily terminated on or after September 1, 2008 and are eligible for COBRA. They need to provide a communication plan or an explanation to send out to these employees who are eligible. Employers need to get their house in order. Contact payroll and your COBRA administrator to find out what they are doing to comply. If not, you may be have to provide a refund to employees or their dependents that have overpaid.

ROLE of the employee/involuntarily terminated employee on or after 9/1/08:
Be proactive at your job. Understand what your company is doing to make sure you receive this subsidy in the event that you are involuntarily terminated. Plan ahead to cover your expenses and make sure that you have a small cushion ready in the event that something like this happens.


As always,

Prioritize, set boundaries, and live!

By: Tricia Riviere

Personal SWOT!

2009 is supposed to be a year of rebirth, renewal and change for me. I had 2 New Years Resolutions. I decided to give up red meat and eating pork. These were very conscious and important decisions that encouraged me to maintain a more healthy lifestyle.

But I wanted something more out of 2009 and thought about my professional ambitions and what my goals were for the next 5 or 10 years. I wanted to strive for the best in my professional career. But there was some planning that needed to be done before I could set any career goals. I thought about my personal SWOT (strengths, weaknesses, opportunities and threats) and how understanding these four areas could help me develop goals not only for 2009 but for the next 5 or 10 years. I developed some goals and a plan to attain those goals based on a thorough analysis of my self.

Take a closer look at the SWOT method--an analysis recognized by many companies; that if done correctly will help the company to grow with the use of a strategic plan, goals and various action plans. How did you devise your goals for 2009? Did you develop a thought out plan that you can follow in order to attain your goals? Maybe the SWOT can work for you too. Think about how you can analyze your personal SWOT and develop a more structured plan for your professional life for the next 5 or 10 years.

Strengths
What are your strengths? What makes you stand out from the rest? Is there something unique that you do? DO you have some special skill set? Do you communicate well?

Weaknesses
We all have them. Do you have any weaknesses? Is there something about you that needs a little work? Are you always tardy for meetings/work? Do you wait until the last minute to get a project done? Are you inflexible?

Opportunities
What opportunities are out there for you to develop yourself? Can you go back to school to get a terminal degree? A second degree? Develop a skill? Can you take on extra projects at work? Do you have a mentor in your field?

Threats
Is there anything holding you back from moving up in your career? Lack of sales? Too much downtime? The economy?

Think about these four areas and come up with a plan that helps you move forward in your professional career. Develop a personal SWOT analysis and develop some attainable goals for the next 5 or 10 years!

As always,

Prioritize, set boundaries, and live!

Connect to your company

This is an interesting first topic for me because it delves literally into how an individual can perform well in an organization by understanding who the organization is and what it delivers to its customer. What is your company brand and how can you benefit from it? A company brand focuses on who the company is and what it delivers. The brand is a signature piece in what people understand that company to be about. Take for example a couple of well known brands: Google, Mercedes. Google is well known as a major search engine all over the world. And in most countries, Mercedes is known for it's luxury appeal. These two companies have distinct brands that set them apart from their competitors and allow them to thrive. Employees that work there understand this brand and must connect to it in some way.

Let's put it this way. You probably won't go very far in your organization if you aren't able to connect in some way with your company. You must know what you're buying into when you decide to work for any organization. For example, when you purchase a home, you're investing in the location, the price, the structure, and most importantly, the return on investment. Now, you won't out of the blue decide on purchasing a home for no reason. You want to connect with your home in some way. So, what do you do? You find things that connect or brand you to your home. Maybe it's the kitchen that's big enough to cook and dine in, or maybe it has a huge garage or a huge lawn space for barbecuing and throwing parties. Is it in a hip community? One that is commuter friendly or family oriented? Whatever the reason, the branding aspect makes your commitment to this investment even more important.

So, what about your company brands you to it. Do you love the investment that you have made or are thinking about making? You must in some way connect to your company brand. Take some time to look a little closer at your company. Does the mission and vision of your company reflect something that you are most passionate about? Do you like the company benefits? Does your company fairly compensate in line with your beliefs on being compensated? Do you see any potential for growth within the organization based on your present skills? Whatever the case, connecting your personal brand to the company brand should be an exciting new venture for you. One that can make your investment with a company even more enjoyable.

As always...

Prioritize, set boundaries, and live!

Welcome to my blog!

Hi all,

A warm welcome to my new blog!

I will focus on HR issues and discussion topics that many of us want to learn more about. The blog is entitled "Blog about HR" because I want to devote my thoughts and advice to issues related to the field of Human Resources. Human Resources is one of the most integral parts of a business. HR partners are not just there to hire and fire employees. HR is there to cultivate the workforce, to encourage employee development and to make sure that a company is moving forward with a workforce that is prepared to take on any challenge. So, as you read the articles in my blog, feel empowered to learn!

Finally, I will sign off with "Prioritize, set boundaries, and live!" for many reasons. That's been my mantra for a number of years and is pretty much how I live my life. When I decide on committing myself to something, this mantra is a great visual for me to get the best out of what it is that I'm doing. So, enjoy my thoughts, enjoy my advice and live!

By: Tricia Riviere