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In late December 2009, President Obama signed into law changes to the COBRA premium subsidy law that previously was set to expire on December 31, 2009. The extension brings added compliance obligations for employers, as the program has been extended two months through February 28, 2010, the subsidy period is expanded by 6 months to 15 months total and separate notice requirements apply.

The American Recovery and Reinvestment Act of 2009 previously established a law under which “assistance-eligible individuals� (AEIs) could receive a 65% COBRA premium subsidy for up to nine months from their continuation effective date. Under the original legislation, an AEI was defined as any COBRA qualified beneficiary who elected COBRA coverage and: (1) Lost group health coverage as a result of an involuntary employment termination; and (2) had a qualifying event between September 1, 2008, and December 31, 2009. The Act included various new administrative requirements for employers, many of which were required within a short time period after ARRA was enacted.

Here are the key provisions of the new COBRA subsidy extension:

1. The maximum subsidy period increases from nine to15 months.
2. The subsidy eligibility period is extended to February 28, 2010 (previously December 31, 2009).
3. AEIs who previously had reached the end of their original premium reduction period before the extension was passed will have additional time to pay their premiums to continue coverage. They must pay the 35% of total premium costs by the later of February 17, 2010, 30 days after notice is provided by their plan administrator, or the end of the otherwise applicable payment grace period.
4. AEIs who paid the full COBRA premium after their original subsidy period expired are eligible for reimbursement or crediting of excess premiums paid.
5. Plan administrators must provide notice of the subsidy extension by February 17, 2010 to those individuals who were AEIs on or after October 31, 2009.
6. Additional notices must also be provided to AEIs who are eligible to make retroactive premium payments at the subsidized rate and those entitled to premium reimbursement.

Two critical tasks in managing any business are to control costs and maximize productivity. Many business owners feel confident that they’re doing all they can in both of these areas. However, if employers aren’t considering the shape their employees are in, they are missing a huge piece of the puzzle that might be affecting both costs and productivity adversely.

According to a study by the Centers for Disease Control and Prevention, 26.1% of American adults were obese in 2008, compared with 25.6% in 2007. If we count Americans who are either overweight or obese, a staggering two out of three fit the bill. These statistics become of even greater concern for business owners when you add the findings of the Department of Health and Human Services (DHHS) survey entitled “Prevention Makes Common Cents: Estimated Economic Costs of Obesity to U.S. Business.”� DHHS discovered that the total cost of obesity to U.S. companies is estimated at $13 billion per year. Health insurance costs related to obesity comprise the largest percentage of the total coming in, at a whopping $8 billion.

Of course, increased insurance costs isn’t the only story here. The ballooning American waistline is the cause of 39 million lost work days; 239 million restricted activity days; 90 million bed days; and 63 million physician visits; numbers which add up to an immense drain on productivity.

What can employers do to combat this growing problem? Start with some suggestions offered by the American College of Occupational and Environmental Medicine:

1. Offer healthy choices in cafeterias and/or vending machines.
2. Provide nutritional information for cafeteria selections.
3. Provide healthier snacks at meetings and other employee events. For example, serve fruit, popcorn, and low-fat yogurt, rather than doughnuts or pastries.
4. Provide bottled water in the vending areas or cafeteria.
5. Institute a workplace wellness program that provides mechanisms to aid employees in adopting healthy lifestyles.
6. Provide educational material on the health risks of being overweight and how to eat healthier.
7. Encourage the use of stairways instead of elevators by placing signs near the elevator and stairs highlighting the health benefits of stair use. Ensure that stairways are accessible and are lighted properly.
8. Discourage employees from eating at their desks. Even a short walk to the cafeteria/lunch room can be helpful.
9. Support physical activity breaks during the workday.
10. Allow employees enough time for lunch so that they can walk or use the gym.

Although there might be an initial cost associated with implementing these provisions, the ROI will prove that the expense was well worth it when employers begin to see the improvements in productivity and the decline in obesity-related health claims. Even more important than these two benefits are the residual benefits received from implementing these changes. When employees see that their employers care enough to provide not just a safe workplace, but also a healthy workplace, these gestures encourage a real sense of loyalty that will ultimately translate into a healthy boost to everyone’s bottom line.

Employees with substance abuse problems cost businesses billions of dollars each year. According to the 2008 National Survey on Drug Use and Health, among the 17.8 million Americans aged 18 or older who admitted to illicit drug use, nearly 73% were employed. This equates to 12.9 million employees who admit to some form of substance abuse.

For the majority of substance abusers, their problem lies with alcohol. According to information published by Ensuring Solutions to Alcohol Problems, a part of the George Washington University Medical Center, alcohol abuse costs American businesses $134 billion in annual losses. Most of the losses are due to missed work: 65.3% of this cost is caused by alcohol-related illness, 27.2% due to premature death, and 7.5% to crime. People addicted to alcohol also spend more time in the hospital and have higher rates of job turnover than their non- or light-drinking co-workers.

Data such as this shows that alcohol and other substance abuse takes a toll on workplace productivity, and contributes to higher medical costs both for treatment of the addiction and for substance-related medical issues. Employee substance abuse problems also cause an increased occurrence of workplace accidents and higher Disability and Workers Compensation costs. There is no question that it is in an employer’s best interests to find ways to minimize the impact of employees’ substance abuse on the workplace.

Experts in the field stress that it is imperative that employers educate employees about the health hazards of substance addiction and encourage employees to seek early treatment of any problems. While stressing the importance of a drug-free workplace, policies that rely primarily on discipline can result in addicted employees hiding their problems out of fear of losing their jobs, and in co-workers enabling such behavior in a spirit of friendship. In this type of environment, an addicted employee might resist seeking assistance — such as obtaining treatment under the medical plan or taking a leave to enroll in a treatment program — until a crisis occurs.

On the other hand, employees will be more likely to seek the help they need if they believe that by doing so they will receive help, not punishment. The same is true of co-workers, who can be a valuable resource in encouraging addicted employees to ask for help and to stay committed once treatment has begun.

Since substance abuse is truly a medical problem, most medical insurance plans include at least some substance abuse benefits. Workplace communications about a business’s policies on alcohol/drug use should include this information. If employees realize that help is within reach, they are more likely to seek solutions to their problem. Some employees might not realize that this benefit is available to them. Employee Assistance Programs (EAPs) can also offer screenings, counseling, and treatment referrals for employees with substance problems. Depending on the individual EAP design, it also might have worksite awareness and supervisor training programs.

Employers should make employees aware that any communications regarding substance abuse issues are confidential. This, together with a supportive (instead of punitive) environment, increases the likelihood that employees will ask for help.

With so many dollars wasted in lost productivity, the incentives for a business to promote substance abuse awareness are compelling. And, because work is such an important part of most people’s lives, the workplace can be an effective place for substance abuse intervention to begin.