The NEW COBRA Rules

I'm going to throw this up first, then explain it over the next 2 - 3 posts:

March 16, 2009 A new COBRA subsidy program is included among the components of the federal government’s economic stimulus package, the American Recovery and Reinvestment Act. The Act provides a 65 percent federal subsidy on COBRA/ CalCOBRA continuation coverage premiums to all qualified beneficiaries receiving continuation coverage due to the covered employee’s involuntary employment termination between September 1, 2008 and December 31, 2009. COBRA and CalCOBRA beneficiaries are eligible for the 65 percent premium for a maximum of 9 months, beginning March 1, 2009. This is not retroactive. To help you understand this new subsidy, we have developed a FAQ sheet that addresses important details of the bill, as well as many of the questions you and your clients may have. This FAQ sheet is available on Producer Connection. The Federal government is still developing details of the subsidy. The government will be sharing details about this over the next 30 days, and as they do, we will communicate them to you. If you are wondering how this law impacts your book of business, we believe that it can have a positive impact on your sales growth. For some the new American Recovery and Reinvestment Act will be beneficial, for others, Blue Shield may have more affordable options. You play a central role in keeping Californians covered, and we appreciate your efforts. If you have any questions, please contact your Regional Sales Executive or Producer Services at (800) 559-5905.

This law can have a positive impact on your sales growth Example for an individual on a Small Group plan+ For a 30 to 34 year old male living in Los Angeles (Region 9) on the PPO 1000: COBRA rate $338.00 Less 65% subsidy $219.70 He pays $118.30 This same individual could get the Vital Shield 2900* plan for $63/month and save $55.30/month!** And remember these important selling points: Although the COBRA subsidy expires after 9 months as long as your premium is paid, an individual’s health plan rates are locked in for 12 months. It is possible to maintain affordable coverage between jobs with the Blue Shield Vital Shield 2900 plan.

+ This example compares a Small Group plan with an IFP plan. Please note there are differences in each respective plan’s benefit design. For details, please download a summary of benefits. *Underwritten by Blue Shield of California Life & Health Insurance Company ** The rate shown is subject to change. Vital Shield plans are medically underwritten, and rates will vary accordingly. If you no longer wish to receive emails from Blue Shield of California, you can unsubscribe by sending a blank email - no need to fill in the subject line. Blue Shield of California, 50 Beale St., San Francisco, CA 94105. Blue Shield of California is an independent member of the Blue Shield Association. Blue Shield® and the Shield Symbol are registered marks of the Blue Cross Blue Shield Association, an Association of Independent Blue Cross and Blue Shield Plans.