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Release Date: 10/12/2001
Release
Number: 01-351
Contact Name: Gloria Della
Phone Number :
202.219.8921 |
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Washington, DC - The U.S. Department of
Labor’s Pension and Welfare Benefits Administration today issued important
information to New York area residents who may be facing the loss of their
health benefits as a result of the September 11th attacks on the World Trade
Center. |
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“Losing a family member or one’s job can
also threaten a family’s health benefits,” said U.S. Secretary of
Labor Elaine L. Chao. “We want people to have all the information they
need to make timely decisions about their health benefits.” |
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The Labor Department is providing answers, through
a toll-free number and its Web site, to the most frequently asked questions
from individuals who want to preserve their benefits, including a description
of the various options individuals have to continue health coverage. |
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One option that may be available to individuals
losing their health coverage is through special enrollment in another
employment-based group plan. For example, an individual who lost coverage as a
result of a spouse’s death or job loss may be able to enroll in a plan
offered through his/her own employer. This type of coverage is generally less
expensive than other options available because the employer often pays a
portion of the premium. |
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To qualify, an individual must request the special
enrollment within 30 days of losing coverage. For some individuals, the 30-day
clock may be running out soon. While employers and plan sponsors have the
flexibility to extend the option for more than 30 days, they are not required
to do so. The plan administrator should be able to clarify the plan’s
requirements. |
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In addition, President George W. Bush’s Back to Work proposal contains $3 billion in National Emergency
Grants allowing governors to assist dislocated workers, including paying up to
75% of a laid-off worker’s COBRA health premium while that worker obtains
training and searches for a new job. The President’s proposal is being
considered by Congress. |
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“While this Administration is working hard to
ensure that individuals affected by these tragic events do not lose their
health coverage, individuals may need to act right away to protect
themselves,” said Chao. |
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To better understand the options for maintaining
health coverage in these circumstances, see PWBAs Frequently
Asked Questions, and the publication entitled, Pension and Health
Coverage - Questions and Answers for Dislocated Workers (available in
both English and Spanish) on the department’s Web site or call
1.800.998.7542 and request copies. |
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Individuals who would like to talk with a
benefits advisor about their specific situation may submit their question electronically
or
call the department’s temporary office in New York at
212.337.2228.
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7775. |
