Navigating the COBRA Maze
Crosby's Rapid Response To ARRA COBRA Changes
 Since the American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law in February, Crosby has been working hard to ensure that all of the COBRA compliance changes necessitated under ARRA are integrated into our normal processes. Under ARRA, employees terminated involuntarily (and their qualified beneficiaries) between September 1, 2008 and December 31, 2009 may apply for a reduction of COBRA premiums for a period of up to nine months. Individuals will be responsible for 35% and the federal government will subsidize the remaining 65% of the premium.
The IRS released Notice 2009-27 containing clarification about many uncertainties stemming from ARRA's COBRA related changes. Below is a recap of some of the necessary steps in our process to ensure we are adhering to ARRA deadlines:
>> Sent clients lists of COBRA qualifying events dating back to September 1, 2008.
>> Sent clients sample participant letters/communications with ARRA content.>> Updated letters/communications for new qualifying events to include ARRA information.>> Processing and mailing packets via Certificate of Mail to all individuals who had any qualifying event back to September 1, 2008.
>> Modified systems and processes to identify and track AEI’s who may be eligible for premium reduction and a new election period.
It is important to note that no additional fees are required for these changes; only current notification-packet fees will be applied for packets that need to be resent due to ARRA. Crosby will continue to review Notice 2009-27 to identify "anything new" and use the guidance to support our processes. Our appreciation goes out to our clients who have worked with us to provide related information and feedback quickly, accurately and effectively. We are rapidly applying updates to our system in accordance with client selections.
For any reason, if you have any questions about ARRA and its affects on COBRA, or, if you would like assistance implementing the necessary changes, please contact your client consultant.
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IIAS Transition Deadline Only Three Months Away
IRS IIAS Transition Requirement: July 1, 2009
In December, the IRS announced that it would extend the deadline for drug stores and pharmacies to implement Inventory Information Approval Systems (IIAS) from January 1st to July 1, 2009. IIAS allow FSA eligible merchandise to be substantiated at the point of sale.
The number of drug stores and pharmacies implementing Inventory Information Approval Systems continue to grow and we anticipate that our auto-substantiation rates will also continue to rise as more merchants add IIAS to meet the July deadline. Many drug stores and pharmacies (online pharmacies included) have already implemented systems well ahead of the transition date, including CVS, Rite Aid and Walgreens. High auto-approval rates translate into reduced paperwork and increased convenience and satisfaction for your participants.
Take advantage of the benefits that the Flex Debit Card has to offer in conjunction with your Flexible Spending Accounts, please contact Darla Rosenfeld via email or by calling 617-630-0468. |
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Summertime = More Riders
Crosby Will Offer Bike Benefit This Summer
 As we get closer to summer, more and more cyclists will be riding the streets in your neighborhood. Please remember that Crosby’s Bicycle Benefit Administration, is available. Our administrative process is easy-to-use for employees and cost effective for employers.
Reimbursable expenses include the cost of purchasing a bicycle, bicycle improvements, repair, and storage for bicycles regularly used for commuting to and from work.
To implement or learn more about this service, please contact Darla Rosenfeld via email or by calling 617-630-0468.
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The Crosby Connection Newsletter is intended for Crosby Client Contacts. © 2009 Crosby Benefit Systems
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... Crosby Is SAS 70 Certified?
To receive a copy or our SAS 70 certification, please contact Benjamin Crosby via email or by calling 617-630-0444. |
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... We can manage your HIRD Form process?
Are you complying with your 30-day deadlines?
> After Open Enrollment
> New hires who turn down coverage
> Employees who drop coverage
Our process is designed to distribute, track and store Employee HIRD Forms so that you don't have to. |
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... A commuter program can make your company money?
> Quick Implementation
> Easy-To-Use
> All Major Metro Areas Covered
> Single System
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For more information about any of our services, please contact Darla Rosenfeld via email or call 617-630-0468. |
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Looking for a Team Roster?
Our organizational design utilizes a client-centered team approach to best meet your needs. If you're interested in receiving a team roster, please email us here to request a complete roster with contact information. |
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