Sen. Kissel Provides Clarification Re: Benefits for Laid Off Hallmark Workers

Sen. John A. Kissel, following up on an announcement from earlier Friday, provided an update on insurance coverage for laid off Hallmark workers.

“This afternoon, I had an excellent conversation with Connecticut Department of Labor staff attorney Heidi Lane, who helped clarify some of the confusion regarding health benefits for Hallmark workers:

• The law does not require Hallmark to offer severance, but the company is doing so.
• Hallmark need not follow Connecticut law, but Hallmark will do so to the extent that everyone will get health insurance for 4 months.
• If the COBRA cost of the 4-month COBRA benefit is less than the employee’s severance pay, Hallmark will pay the difference as severance. Example: Severance is $10,000 and COBRA is $4,000. The employee will end up with the 4 months of health benefits and $6,000 in severance. This is particularly good news for those with pre-existing illnesses and those who expect to receive health care services in the future.
• If the COBRA cost of the 4-month benefit is greater than the employee’s severance, the 4-month COBRA benefit will be provided at no additional cost to the employee. Example: Severance is $2,000 and COBRA is $4,000, Hallmark will pay the difference and the employee will receive the 4 months of COBRA at no cost to the employee and will not receive severance. This is particularly good news for recent hires.

“Do I wish that Hallmark would offer 4 months of healthcare free and not deduct it from the severance offered? Yes. But, because the severance was announced at the time of the layoffs and is not legally required, Hallmark can say the 4 months of health care is technically free even while deducting it from the severance offered earlier.

“Half a loaf is better than none, and for some the 4 months of health care may be more important than the total severance. At least people can now begin to plan, and Attorney Lane and the Department of Labor deserve praise for negotiating the best deal possible under the current circumstances.

“Hallmark employees and their families need all the clarity they can get, and we need to make sure they understand what benefits are available to them. I appreciate the fact that the state labor department is heavily engaged in the ongoing process of helping Hallmark workers to plan ahead during this very difficult time.”