Oregon State Continuation Change in Administration
Oregon legislation became law on April 28, 2009 extending state continuation coverage from six (6) to nine (9) months. This means employer groups with fewer than 20 employees, or otherwise exempt from the federal COBRA law, their employees may elect to continue group coverage up to nine (9) months. In addition, as you may recall from an earlier communication, as part of the federal American Recovery and Reinvestment Act of 2009 (ARRA), which became effective February 17, 2009, employees may be eligible for assistance with premiums for state continuation of their group insurance plan for up to nine (9) months. The amount of assistance is 65% of the state continuation premium that they otherwise would owe.
These recent laws apply to those who qualify as “Assistance Eligible Individuals” (AEIs). An AEI is a person who:
- lost coverage as the result of an involuntary termination from employment in the period from September 1, 2008 through December 31, 2009,
- was covered through an Oregon employer’s coverage that is subject to the state continuation requirement, and that employer still provides group coverage,
- is not eligible for (regardless of whether that person is enrolled in) Medicare or another group health plan.
In addition, the Oregon law authorizes a special 31-day extra election period for individuals who experienced an involuntary termination of employment on or after September 1, 2008 but prior to April 28, 2009 (the effective date of the rules implementing the new law), and either:
- did not chose to enroll in state continuation coverage during their initial 31-day election period, or
- elected state continuation coverage but then lost that coverage prior to the April 28, 2009, effective date.
State continuation for AEIs who take advantage of the extra election period will be effective the later of the first day of the coverage month beginning on or after February 17, 2009 (generally, March 1, 2009) or the first day of the coverage month first following the qualifying event.
Click here to view the letter mailed May 29, 2009 to small group employers.
Click here to view the letter mailed May 28, 2009 to those members on a Bluechoices product.
Click here to view the letter mailed May 28, 2009 to those members on an Innova, Engage & Activate product.
Click here to view the Summary of the Continuation Coverage Premium Reduction Provisions under ARRA for Bluechoices product.
Click here to view the Summary of the Continuation Coverage Premium Reduction Provisions under ARRA for Innova, Engage & Activate products.
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