COBRA Subsidy 2009 and Illinois State Continuation Coverage
- What the COBRA Subsidy Means for Employers
- Illinois State Continuation
- 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.
Illinois State Continuation
The premium reduction is also available for group health insurance that is required by state law to provide comparable continuation coverage. It does not, however, apply to the continuation of group coverage for certain family members and dependents (referred to as State Continuation for Certain Dependents provision).
In Illinois, state law requires employers of any size to provide group continuation coverage. The State of Illinois has made recent changes to IL laws governing state continuation coverage. The new law provides a new special enrollment opportunity for electing state continuation coverage and applying for premium assistance subsidized by the federal government under the American Recovery and Reinvestment Act of 2009.
State continuation coverage has been extended from 9 months to 12 months. All group plans that are renewed or amended after June 18, 2009 must provide for up to 12 months of continuation coverage. This is a permanent change in Illinois state continuation law. Also, those participants already on state continuation coverage are entitled to an additional 3 months of coverage at their full cost, regardless of the date they first elected coverage, if they are currently on subsidized state continuation and the group’s plan is renewed or amended after June 18, 2009. For more detailed information about COBRA and state continuation laws, please refer to the following Illinois Division of Insurance consumer fact sheets:
Forms and Notices
and Request for Information forms regarding involuntarily terminated employees
Employers will need to provide us with information about all involuntarily 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@bcbsil.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 BCBSIL.
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@bcbsil.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
Useful Links
