Archive for August 3rd, 2009

IF YOU LOSE YOUR JOB-

WHAT YOU NEED TO KNOW ABOUT

UNEMPLOYMENT COMPENSATION & MEDICAL INSURANCE

By Mark Laderman, Esq. , Associate Attorney

Law Firm of Kamensky-Cohen

The American economy lost more than 2 million jobs in 2008, the most of any year since the end of World War II. Manufacturing activity is at its lowest level in nearly three decades. Experts believe unemployment could reach double digits if no action is taken.

In response to these challenges, on February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (Act).  It has been hailed as an unprecedented effort to jumpstart our economy and create or save millions of jobs. The Act has been called an extraordinary response to a crisis unlike any since the Great Depression, and includes measures to modernize our nation’s infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.

While the Act affects many people in many different ways, there are two major changes affecting those who have lost their jobs in these tough times.  First, the Act extends the Emergency Unemployment Compensation (EUC) program through December 2009, increasing weekly Unemployment Insurance benefits, and providing financial incentives for states to modernize their Unemployment Insurance systems to expand coverage and handle higher workloads.  Second, the Act changes the potential avenues available to continue medical insurance coverage after a termination of employment.

In New Jersey, all individuals receiving regular Unemployment Insurance (UI), Extended Unemployment Compensation (EUC), Self-Employment Assistance (SEA), Trade Act (TRA), Unemployment Compensation for Federal Employees (UCFE) and Unemployment Compensation for Ex-Servicemembers (UCX) benefits will receive an additional $25 payment for each week of benefits paid beginning with week ending February 28, 2009, and extending through the week ending July 3, 2010, provided that the claim for benefits is dated no later than December 20, 2009.  Therefore, if you are uncertain if you are eligible, you should contact a qualified attorney to discuss your particular situation.Â

In addition, the Act has changed the potential avenues available to continue medical insurance coverage after a termination of employment.  One change is that eligible individuals now pay only 35% of the Consolidated Omnibus Budget Reconciliation Act (COBRA) or New Jersey Continuation premium and have no responsibility for the remaining 65% of the COBRA or New Jersey Continuation premium. The premium reduction applies to periods of medical insurance coverage beginning on or after February 17, 2009 and lasts for up to nine months.

Generally, COBRA applies to employer groups who employ twenty or more employees.  COBRA is the Federal law that allows persons who lose medical insurance coverage for a variety of reasons to continue coverage under the group plan of their employer for fixed periods of time.

In New Jersey, Continuation usually applies to employer groups who employ fewer than twenty employees. New Jersey Continuation is based on a New Jersey law that allows persons who lose coverage for a variety of reasons to continue coverage under the group plan of their employer for fixed periods of time.

There are some exceptions to the twenty or more employee guideline for COBRA and less than twenty employee guideline for New Jersey Continuation, so the best way to find out which law applies to you is to contact your lawyer.

*The laws are continually changing to meet the needs of the nation’s economic situation.  To insure that your benefits and rights are accurately being served, contact a reliable attorney specializing in Labor and Employee Matters.  Kamensky Cohen has attorneys whose area of practice is devoted to these issues.  You can reach them at info@kc-law.net or visit http://kc-law.net.