Congress recently enacted two federal laws that enhance health care coverage for members of the U.S. Armed Forces. The Veterans Benefits Improvement Act increases job-related protections to individuals who temporarily leave work to serve in the United States Armed Forces and directly impacts all employers who offer group health plans to their employees. The National Defense Authorization Act for Fiscal Year 2004 may indirectly impact employers who offer group health plans.
Generally, employers of all sizes are subject to the Uniformed Services Employment and Reemployment Act of 1994 (USERRA), which was enacted principally to provide reemployment rights to employees who are called to military service, including the Coast Guard, National Guard, Public Health Service and the reserves of each branch of the military. The Veterans Benefits Improvement Act, which took effect on March 10, 2005, contains two important provisions. First, all employers are now required to post a notice to employees describing their rights under USERRA. Employers may use the U.S. Department of Labor's template for a posting that conforms to the requirements of the new law, which may be accessed at http://dol.gov/osbp/sbrefa/poster/main.htm.
Second, the Act extends the time period in which employees who are engaged in active military service may purchase individual and family health care coverage under their employer's group health plan. For all elections to continue health coverage made after December 10, 2004, the period of eligibility has been extended from 18 to 24 months. There are no changes to the premium that a plan sponsor is permitted to charge an employee for the continued coverage; for any military leave that exceeds 31 days, the plan may charge up to 102% of the plan cost, but for military leaves of less than 31 days, then the participant may only be charged the regular contribution amount.
The National Defense Authorization Act for Fiscal Year 2004, which became effective on April 26, 2005, may indirectly impact employers who have employees that are reserve members of the U.S. Armed Forces. Reservists who were called to duty after September 11, 2001 to serve more than 30 days and who served for 90 or more days, are eligible to purchase extended health care coverage after they demobilize under the military health plan known as TRICARE. While this health plan is administered by the military and does not directly impact health coverage offered by employers, dual coverage between TRICARE and an individual's employer-provided health plan may result and would require coordination of benefits during the time the dual coverage is in place.
Should you have any questions about the interpretation or the application of these new federal laws, please contact Walter M. Foster, Esq. at wfoster@sheehan.com.
This article is intended to serve as a summary of the issues outlined herein. While it may include some general guidance, it is not intended as, nor is it a substitute for, legal advice. Your receipt of Good Company or any of its individual articles does not create an attorney-client relationship between you and Sheehan Phinney Bass + Green or the Sheehan Phinney Capitol Group. The opinions expressed in Good Company are those of the authors of the specific articles.
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