COBRA Subsidy 2009
- COBRA Premium Subsidy Extended
- What the COBRA Subsidy Means for Employers
- Forms and Notices
- Request for Information forms regarding involuntarily terminated employees
- Useful Links
What the COBRA Subsidy Means for Employers
The American Recovery and Reinvestment Act of 2009 signed into law February 17 expands COBRA in many ways. Most significantly, the act offers assistance-eligible individuals a 65 percent subsidy of their required COBRA premiums.
Under the provision, the federal government provides a premium subsidy for up to nine months for workers who lose health coverage as a result of being involuntarily terminated between Sept. 1, 2008 and Dec. 31, 2009 and who are eligible for COBRA coverage benefits, and their dependents.
The premium reduction is also available for group health insurance that is required by State law to provide comparable continuation coverage. It does not apply to the continuation of group coverage for certain family members and dependents (referred to as State Continuation for Certain Dependents provision).
A new Texas law enacted June 21, 2009 makes changes to existing state continuation law to allow for the federal government’s financial assistance to those Texas participants under state continuation who did not elect state continuation or who lost state continuation coverage for some reason other than expiration of their Texas state continuation period, and are still within their six-month period for potential continuation coverage.
The new law creates a special 60-day election period, beginning July 1, in which those individuals may elect six (6) months continuation coverage. This limited enrollment period is available only for employees terminated between January 1 and February 16, 2009 due to restrictions within the new law and its effective date.
- Texas Six Month State Continuation of Insurance Application Form (Post-COBRA)
and instructions - COBRA: Answers for Employers @irs.gov
Request for Information forms regarding involuntarily terminated employees
Employers will need to provide us with information about newly terminated employees by completing and returning the appropriate Request for Information form(s), located below.
Secure E-mail Process
We have created a secure e-mail account to ensure protection of the Sensitive Personal Information (SPI) being transmitted electronically. To begin, send an e-mail to bluecrossblueshield_COBRA@bcbstx.com. You will receive a special response reply directing you to a Web site, where you will be instructed on how to create a protected account to securely submit information to BCBSTX.
The e-mail you receive will also include the Request for Information form as an attachment. Simply complete the form and return to bluecrossblueshield_COBRA@bcbstx.com as an attachment, using the same Web site you were directed to in the response e-mail.
Mail or Fax Process
Secure e-mail is the preferred method for providing the requested information. However, if you prefer to mail or fax your records, you may submit the information using the Request for Information forms below for each of your employees. You may mail the form to our COBRA Unit at P.O. Box 1180, Marion, Illinois 62959. Or, fax to us at 618-998-3999.
Request for Information Forms
- COBRA eligible employees (Excel)
- State Continuation eligible employees (Excel)
