04/03/2009
The ABCs of ARRA and CHIPRA for employer groups
In February President Obama signed the American Recovery and Reinvestment Act (ARRA) and the Children's Health Insurance Program Reauthorization Act (CHIPRA). Both laws can impact employers.
For that reason, we are contacting our members and employers to help clarify ARRA. On April 6 we will mail a letter to all of our employer groups to explain portions of that law.
ARRA applies to groups that are subject to COBRA and includes some important changes to COBRA that require swift action. We want to explain our mutual responsibilities under these new provisions and provide resources to answer some common questions.
Below are some of the highlights from the new ARRA/COBRA law. You can find more information in the Frequently Asked Questions (FAQ).
Notification of employees
The law states that employers must notify each eligible employee who is experiencing certain qualifying events. The notification must be sent no later than April 18, 2009. Please see the FAQ for descriptions of those qualifying events. As a carrier, Asuris will not notify group members. The FAQ includes online resources, such as model notices and FAQ information from the federal government.
Subsidy payment and recovery
If a group is subject to COBRA, the group will be responsible for paying the full COBRA premiums to Asuris for eligible employees who choose to enroll and take advantage of the subsidy. The group will also be responsible to recover the 65% subsidy from the IRS.
Information to give to Asuris
If a group is subject to COBRA, the group will continue to use the same COBRA application form they have always sent to Asuris. They will need to note on the form whether or not the qualified beneficiary is eligible for the subsidy. Failure to do so may lead to processing delays.
This new law was enacted with an aggressive effective date. As always, groups should look to their legal or benefits counsel for detailed analysis and advice.
For details see the COBRA FAQ that we hope will help with a successful implementation.
We have also included information on the CHIPRA legislation, including information groups can distribute to their employees (whether enrolled or not).
Asuris is committed to helping our employer groups understand these new provisions. To that end, we will post updates on our Web site.
We will make every effort to respond to your questions quickly. We appreciate your continued business. Together, we can successfully work through these new changes.
If you have questions, please talk to your Asuris Sales contact
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