Hello fellow employees,
This week’s announcements by our Governor’s did not shed any light as to when we can reopen our restaurants and clubs, and begin the process of rebuilding our businesses. As the COVID-19 crisis continues into its second month, and with little to no revenue coming in, we are forced to make more tough decisions.
Beginning May 1, we will discontinue medical and dental coverage for employees who are not actively working. Employees will have coverage through April 30, 2020. COBRA, which allows employees to continue the same medical and dental benefits, will be made available to all affected staff. It is important to note that this does NOT mean that as an employee you have been terminated.
Those who are losing health care coverage will have approximately 60 days to make a decision to elect COBRA or not. No COBRA premiums need to be paid until you make that decision. You’ll need to make a personal decision about when, and if, to elect COBRA depending on your unique circumstances. Several of us have had the option to select COBRA when we transferred from one job to another. We were young and healthy and chose to go without coverage for a few months until we became eligible for benefits with the new company. It all worked out well, but that’s not going to work for everyone. Again, that’s an option that you’ll have decide based on your situation.
Electing COBRA means that you will have to pay both the employee and employer portions of the premium and this will allow you to continue health care without any gap in coverage. Our health care partners will send you complete COBRA information through the mail.
In addition to COBRA, you may have the option to obtain coverage through the health care exchange. To find out more about the plans available and the cost, you can go here https://www.obamacareplans.com/, and type in your zip code, or call, (833) 814-7667.
We are hopeful that we are allowed to reopen sooner rather than later, and plan to offer our employees scheduled hours as soon as we are able. When employees who were on health care benefits return from furlough, they will once again be eligible for benefits on the first of the month following their return.
I know this is more tough news, and neither you nor the business planned for any of this to happen. We are doing what we can to ensure you have a job to return to when this is all over.
Stay healthy,
Rick Howell
EVP People and Performance
CoHo Services
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