Adminstrator Alert from Shargel & Co: Up-to-Date Administration



Timely Topics for Group Benefits Administrators		Issue 24 January 2008

Happy New Year! The new year brings new deductible and copayment accruals for employees. We've created a general refresher newsletter for you to distribute. You'll also find some administrative reminders regarding COBRA and Medicare.

In this Issue:

Health Plan Refresher for Employees

COBRA and Cal-COBRA

Employees and Medicare

Medicare Part D Creditable Coverage

Health Plan Refresher for Employees

If your employees can use a little help understanding their

benefits, we've got a newsletter that should get them on track.

Download "Making the Most of Your Benefits" from our website here. You can print or email it.

You can also provide the newsletter to new employees when benefits become active.

COBRA and Cal-COBRA

Has your business grown over the past year? If you had 20 or more full- or part-time employees for at least half of 2007, you will be subject to federal COBRA laws. (Under 19 is subject to Cal-COBRA.)

Under federal COBRA the employer is responsible for ensuring that all notification requirements are met. If you don't have a third-party administrator to handle your COBRA administration for you, call us. It can make your life a lot easier.

Employees and Medicare

Medicare rules can be complicated. If you have employees or their spouse turning 65, have them contact us regarding their Medicare options.

If you have less than 20 employees, Medicare will be primary and your small group rates should be reduced.

Medicare Part D Creditable Coverage

As health carriers create lower-cost plans and change benefits on existing plans, it's possible your group plan could lose it's creditable coverage status for the Medicare Part D prescription drug program at renewal.

If you have employees or dependent spouses over age 65 this could result in a penalty fee if they don't sign up for Part D when first eligible.

We will be identifying groups with affected plans at renewal to help you with notification of the Centers for Medicare and Medicaid Studies. Please let us know if you have employees turning 65! We can help them determine their best options.