If you lose or have lost work during this period, you need to know about these provisions because they can save you money. Keep in mind, however, that if you voluntarily quit your job you don’t qualify. Moreover, individuals who were fired for negligence or misconduct don’t qualify either.

If you are an employer and let employees go during these 15 months, new rules under this law require action on your part. Among its many features, ARRA provides federal subsides that reduce premiums for nine months of COBRA or Cal-COBRA coverage.

During this nine-month period eligible individuals (and their qualified beneficiaries) are responsible for only 35 percent of their premiums. For COBRA recipients the remaining 65 percent must be paid by their former employer, while for Cal-COBRA recipients, the 65 percent portion must be paid by the insurer. Employer and insurer payments, however, are fully reimbursable through a tax credit.

Another provision of the new law allows COBRA recipients to switch their health coverage to a less expensive policy if that policy is available to all active employees of their former company.

Under the previous law, an eligible employee could only elect to continue coverage under the policy they had at the time they were terminated. To comply with ARRA, employers must amend their existing COBRA notice forms and distribute additional notices that include information about these benefits.

CalCPA member firms with ProtectPlus coverage should take note that Seabury & Smith has already sent letters to all those they believe are eligible under Cal-COBRA. Employers with 20 or more employees who fall under COBRA regulations are themselves responsible for notifying former employees who may be eligible.

If you have questions or concerns regarding these issues, please contact Seabury & Smith customer service at (800) 824-1154. Those with other health insurance coverage should make sure they are in compliance.

Ensure access to quality, affordable coverage

Congress has begun to debate how to reform our nation’s health care system, and it is important for them to hear from you. It is an historic opportunity to enact comprehensive reform that makes health care more affordable, improves quality and covers all Americans.

We strongly support reform that builds a strong, sustainable private-sector health care system – and strongly oppose creating a government-run health plan. We are urging our elected officials in Washington to take bipartisan action that will accomplish that. We are educating policymakers in Washington and working with our trade associations to encourage Congress to build on the current system and not disrupt the quality, affordable coverage on which our members depend.

Our elected officials need to hear from you

There is a role that you can play in this effort, too. As our elected officials debate health care, they need to hear directly from you. You understand the important role that private-sector health plans play in ensuring access to quality, affordable coverage.

Surveys show that the American people support a common-sense approach in which the public and private sectors work together to fix the health care system. We agree. Nonetheless, there are proposals in Washington that would threaten our ability to continue serving individuals, families and employers. We cannot allow that to happen.

That is why it is important for you to get involved in our grassroots effort. Here are some steps that you can take to get involved in the health care reform debate and to ask others to participate as well.

Getting involved is easy

There are several easy opportunities to make your voice heard:

1. Go to healthactionnetwork and sign up to be a part of our grassroots campaign. When you register you will learn who your federal representatives are.
2. Write a letter. Once you register on the Health Action Network, you will have the opportunity to send an email to your elected officials.
3. Make a toll-free phone call to share your views with your federal lawmakers.  After you have registered on the Health Action Network site, you will have the opportunity to take part in a phone alert in which you will be presented with a toll-free number and a PIN to enter once you have dialed in. Your PIN will enable us to patch you through to the offices of your U.S. Senators and your U.S. Representative.
4. Post information on your Facebook page. Simply click the Facebook button provided on the Health Action Network and follow the instructions. The information will be published on your Facebook profile. Also, please be sure to become a fan of the Health Action Network on Facebook and encourage your friends and family to do the same!
5. Tell a friend. Once you have emailed your elected officials, you will have the opportunity to spread the word to family and friends by using our “Tell a Friend” feature.

The private-sector health care community is actively engaged in support of reform across the country. This effort gives all of us a chance to have our voices heard in Washington.

Thank you for your ongoing efforts in maintaining and enhancing the private-sector health care marketplace.

Last Thursday, President Obama confronted the healthcare situation, here is a short clip from his speech.  See more videos, or this article from Associated Press Obama Confronts Critics on Health Care Overhaul.

The new CalCOBRA legislation, California Assembly Bill 23, is expected to be signed by the Governor by the end of this week. This bill will align the current CalCOBRA legislation with the Federal Subsidy as defined by ARRA (American Recovery and Reinvestment Act). The following are high-level details you should be aware of:

• This bill states that health plans and health insurers have 14 days from the date of enactment to provide proper notification to those individuals who may qualify for the Cal-COBRA subsidy. The Department of Labor (“DOL”) has agreed that the timeliness within which the state mini-COBRA programs must comply is to be determined by the states themselves. The DOL held a call with the California Department of Insurance (“CDI”) and the Department of Managed Health Care (“DMHC”) to assure this is understood by all three regulators.
• The mailing will go out to all individuals who had a qualifying event between Sept. 1, 2008, to the present, regardless of whether or not they had already elected CalCOBRA.
• The bill (AB23) currently states that California residents who were involuntarily terminated from their jobs between Sept. 1, 2008, and the present will qualify for the Cal-COBRA special election period.
• There is a notice letter being developed by Anthem in conjunction with the California Association of Health Plans (“CAHP”) and other health plans in this state. Once finalized, this notice will be deemed approved by both the CDI and DMHC. Anthem will send the notice as soon as possible following the enactment of AB 23.
• Once the bill is finalized and signed into law, Anthem will share a more detailed summary of the specific provisions of this law.

To continue reading “In the Interim“