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December 1986 "VERY IMPORTANT NOTICE" As of January 1, 1987, a new Federal law which was enacted April 7, 1986, (Public Law 99-272, Title X) requiring that Health and Welfare Funds under the joint trust between the Union and the Employers, as provided in the Taft Hartley Act, offer participants and their families the opportunity for a temporary extension of certain health coverage (called "Continuation Coverage") at group rates in certain instances where coverage under the plan would otherwise end. This notice is intended to inform you, in a summary fashion, of your rights and obligations under the continuation coverage provisions of the new law. (Both you and your spouse should take the time to read this notice carefully.) If you are a participant in the United Food and Commercial Workers Health and Welfare Fund, you have a right to choose this continuation coverage if you lose your group health coverage because of a reduction in your hours of employment or the termination of your employment ( for reasons other than gross misconduct on your part.) If you are the spouse of an employee covered by the United Food and Commercial Workers Health and Welfare Fund, you have the right to choose continuation coverage for yourself if you lose group health coverage under U.F.C.W. Health and Welfare fund for any of the following four reasons: 1. The death of your spouse; 2. A termination of your spouse's employment (for reasons other than gross misconduct) or reduction in your spouse's hours of employment; 3. Divorce or legal separation from your spouse; or 4. Your spouse becomes eligible for Medicare. In the case of a dependent child of an employee covered by the United Food and Commercial Workers Health and Welfare Fund, he or she has the right to continuation coverage if group health coverage under U.F.C.W. Health and Welfare Fund is lost for any of the following five reasons: 1. The death of a parent; 2. The termination of a parent's employment (for reasons other than gross misconduct) or reduction in a parent's hours of employment with his company; 3. Parents' divorce or legal separation; 4. A parent becomes eligible for Medicare; or 5. The dependent ceases to be a "dependent child" under the United Food and Commercial Workers Health and Welfare Fund. Under the new law, the employee or a family member has the responsibility to inform the office of the Administrator of a divorce, legal separation, or a child losing dependent status under U.F.C.W. Health and Welfare Fund. The Employer has the responsibility to notify the Plan Administrator of the employee's death, termination of employment or reduction in hours, or Medicare eligibility. When the Administrator is notified that one of these events has happened, the Administrator will in turn notify you that you have the right to choose continuation coverage. Under the new law, you have at least 60 days from the date you would lose coverage because of one of the events described above to inform the Administrator that you want continuation coverage. If you do not choose continuation coverage, your group health insurance coverage will end. If you choose continuation coverage, the U.F.C.W. Health and Welfare Fund is required to give you coverage which, as of the time coverage is being provided, is identical to the coverage provided under the plan to similarly situated employees or family members. The new law requires that you be afforded the opportunity to maintain continuation coverage for 3 years unless you lost group health coverage because of a termination of employment or reduction in hours. In that case, the required continuation coverage period is18 months. However, the new law also provides that your continuation coverage may by cut short for any of the following five reasons: 1. Your employer no longer provides group health coverage to any of its employees. 2. The premium for your continuation coverage is not paid; 3. You become an employee covered under another group health plan; 4. Your become eligible for Medicare; 5. You were divorced from a covered employee and subsequently remarry and are covered under your new spouse's group health plan. You do not have not show that you are insurable to choose continuation coverage. However, under the new law, you will have to pay a premium, which is 102% of the cost for your continuation coverage. (The new law also says that, at the end of the 18-month or 3-year continuation coverage period, you will be offered the opportunities to enroll in and pay the cost for those benefits that are convertible.) This new law applies to the United Food and Commercial Workers Health and Welfare Fund beginning on January 1, 1987. If you have any questions about the new law, please contact the office of the Administrator, Room 214, 150 S. 43rd Street, Harrisburg, PA 17111. Also, if you have changed marital status, or you or your spouse change addresses, please notify the Administrator at the above address. |