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State COBRA Continuation Subsidy Extension Notices in the Mail

Feb 08, 2010


Subsidy extension notices mailing to members with state continuation

Due to the extension of COBRA and state continuation subsidies, in January, Anthem Blue Cross sent the attached notification to affected members with state continuation coverage.

The notification explains how to request reinstatement of coverage. Employer groups may see members who were previously terminated reappear on their monthly billing statements due to these reinstatements.

In addition, Small Group employers will be sent a communication in February, notifying them of a continuation in their state. Please watch for updates on these communications.

Background

On December 17, 2009, President Barack Obama signed an extension of the COBRA subsidy program originally introduced under the American Recovery and Reinvestment Act of 2009 (ARRA).

ARRA provides for a federal subsidy of 65 percent of the COBRA continuation coverage premiums for qualified beneficiaries receiving COBRA continuation coverage due to involuntary termination of employment between September 1, 2008, and December 31, 2009. These individuals, referred to as "assistance-eligible individuals" were entitled to receive the subsidy for up to 9 months.

Under the new COBRA subsidy extension provision:

Impact on state continuation coverage:

Please contact your B&P Sales Representative if you have any questions.

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