Understanding COBRA Health CoverageWritten by Tony Novak
As more people face job cuts in this slowing economy, issue of COBRA medical insurance becomes more important. This is a very brief review of a few of most important points if you are suddenly faced with need to pay for your own medical coverage.The acronym “COBRA” was brought about by a tax law change that required employers with more than 25 employees to offer temporary health insurance in event of lay-offs and other circumstances that interrupt coverage under employee benefit plans. It simply means that an ex-employee pays former employer in order to continue to stay on company’s medical insurance plan. You must make this election within 30 days of your job termination by delivering appropriate payment for your insurance to employer. COBRA ensures that you will have access to continued coverage, but usually at a higher price than other types of medical insurance. COBRA is meant only as a temporary solution, not as a permanent medical plan. And, depending on specific insurance plan, COBRA coverage may not be effective if you move to another residence away from insurance plan's coverage area. SMALL BUSINESSES are exempt from COBRA, meaning that they do not offer option of medical benefits to an ex-employee. Some companies continue to offer ex-employees medical benefits by simply not informing insurance company of termination. Be careful, this can backfire. Most small group medical pans do not allow coverage for ex-employees.
| | HIRE AND HOPE . . . IS THAT YOUR PLAN FOR GROWTH?Written by Mason Duchatschek
“If they can fog a mirror we’ll hire them.” “If their crimes weren’t too bad, we’ll give them a job.” “We’ll hire whatever applicants we can get.” Sound familiar? When I hear statements like that from people who call themselves professionals, I cringe. The problem is that I have been cringing a lot lately. Low unemployment has frustrated many employers and managers who are finding that old ways of doing things don’t cut it anymore. Sure it’s easy to complain and say that there aren’t enough applicants to be overly particular. After all, low unemployment is real and excuse is a valid one. It’s easy to rationalize that it isn’t company’s fault that economic growth has diminished applicant pools in terms of both quantity and quality. However, successful companies and successful people don’t accept excuses, and they won’t let rationalizations cover up their need to deal with formidable challenges. They won’t tolerate lowering of hiring standards. Companies that must add employees to grow and prosper have two choices. They can either: A. Lower hiring standards, or B. Raise hiring standards and effort necessary to achieve those standards. At first glance, Option A sounds like easiest. But is it? Additional time and resources must be allotted to deal with increase in problems frequently associated with hiring mistakes:
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