Insurance Agent Forum

[Dave020]

Ok, I just got off of the phone with Anthem regarding what was posted in another thread about the possible impact of the 65% subsidy pertaining to state mini-COBRA programs.

It is currently being reviewed by legal at the CA carriers (and I am sure other states) and as of yet the actual impact is not known. It may in fact be that state laws are going to be circumnavigated by the federal government and imposition of such a subsidy might happen even in 3-person group plans. Since the employer is completely out of the loop on mini-COBRA state continuation, who exactly is going to be responsible for the 65% subsidy, the carrier? What if a state has no mini-COBRA program, will they have to start one?

Secondly, apparently notification letters have begun being sent out and Anthem has gotten a significant number of calls already from people wanting "their 65%". They don't even know what it is but sure enough, they want their damned money!

Does the termulus bill have any provision in it for penalty if a group does not offer health insurance coverage? If not, the carriers at least in CA expect to see a "significant" reduction in group health plans once the interpretation of this bill is complete. Those hit hardest will undoubtedly by small business under 50 employees who will not be able to afford the cost of subsidy against some bogus tax credits. If no one is going to ding their payroll in lieu of offering, I expect many will just dump it and move on. Anthem says they are seeing many groups dumping right now with the principals going onto IFP.

I swear I saw a movie like this with Jack Nicholson and some big Indian guy!

Maybe they should hire this guy:

YouTube - Abridged Rainman

[somarco]

Decided to do some updated research using "COBRA american recovery reinvestment act" and see what turned up.

Almost sorry I did . . .

Here is a PDF from a law firm.

The DOL site says this.

The American Recovery and Reinvestment Act of 2009 (ARRA) provides for a 65% reduction in COBRA premiums for certain assistance eligible individuals for up to 9 months. An assistance eligible individual is a COBRA “qualified beneficiary” who meets all of the following requirements:

*

Is eligible for COBRA continuation coverage at any time during the period beginning September 1, 2008 and ending December 31, 2009;
*

Elects COBRA coverage (when first offered or during the additional election period), and
*

Has a qualifying event for COBRA coverage that is the employee’s involuntary termination during the period beginning September 1, 2008 and ending December 31, 2009.

Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction. Other limitations may also apply. There is no premium reduction for periods of coverage that began prior to February 17, 2009.

More info in the link as well as this and this.

Then we have this from the IFEBP which has some fun links to a dozen or so other resources.

Haven't had time to read it yet. Got to get in a pick up game with McMurphy and the chief. Afterwards, I get a free lobotomy.

[healthagent]

Anyone hear that giant sucking sound? I do.

[moonlightandmargaritas]

Originally Posted by Dave020

It may in fact be that state laws are going to be circumnavigated by the federal government and imposition of such a subsidy might happen even in 3-person group plans. Since the employer is completely out of the loop on mini-COBRA state continuation, who exactly is going to be responsible for the 65% subsidy, the carrier? What if a state has no mini-COBRA program, will they have to start one?

This could very well be the case.

In other parts of the "stimulus package" if the states take the money, they also agree that any federal mandates will trump state statutes to the contrary.

In addition, state legislators have been given power over the governors to accept/reject.

Can you say clusterf*ck?

[healthagent]

The other way of doing it would be for the treasury to cut checks directly to the former employee. That would be a nightmare.

The ex would have to remit some type of proof that they were actually paying their premiums. If not, you leave your job, remit your COBRA notification to the gov't, get the check and it's off on vacation!

[Delta76]

The other way of doing it would be for the treasury to cut checks directly to the former employee. That would be a nightmare.

Or cut the check directly to the insurance company.