Important Updates to Texas, New Mexico, and Arizona State Continuation you need to know about.

TEXAS

A new Texas law enacted June 21, 2009, changes the way that State continuation works. Some of these changes are designed to help employees who have lost their jobs to keep their health coverage.

State continuation laws apply to NON-COBRA fully insured groups, including church groups, and may also apply to certain members coming off COBRA.

New Law Provisions for Texas State Continuation

• Standard state continuation coverage extends from six months to nine months for effective dates on or after 7/1/2009
• Employer provides notice to employee upon termination
• Premium Payment due within 45 days of first day of coverage
• Premium Payment due within 30 days of due date

NEW MEXICO 

COBRA Coverage

Your covered health benefits under COBRA will be the same as those you had before you qualified for COBRA. For example, if you had coverage for medical, hospitalization, dental, vision, and prescription drug benefits before COBRA, you can continue coverage for all of these benefits under COBRA. If these benefits were covered under more than one plan (for example, a separate health insurance and dental insurance plan) you can choose to continue coverage under any or all of the plans. Life insurance is not covered by COBRA.

You might be asking, “What if my employer changes the health benefits package after a qualifying event?”

Answer: You must be offered coverage identical to that available to other active employees who are covered under the plan.

Click here for more information on COBRA regarding pre-existing conditions, out-of-pocket expenses, and how long coverage lasts (http://healthinsuranceinfo.net/getinsured/new-mexico/individual-health-plans/cobra-continuation-coverage/)

Continuation Coverage

If your employer offers fully insured health benefits, you may also be eligible for up to 6 months of continuation coverage under a New Mexico law that is similar to COBRA. Ask your former employer or the New Mexico Division of Insurance about state continuation coverage if you think it applies to you.

If your employer offers health insurance through the New Mexico Health Insurance Alliance and you leave that job, you can continue your Alliance health plan indefinitely. In addition, you are eligible for this coverage, if you lost your group coverage for almost any reason, including losing or quitting your job, aging off your parents’ policy, losing coverage you had through a family member due to death or divorce, and losing coverage because your employer goes out of business. You must have been covered under Alliance group health plan for at least 6 months to qualify for this continuation coverage.

If you had dependent coverage, you and your dependents can elect this continuation coverage from the Alliance independently.  Premiums for Alliance continuation coverage are the same as those charged other individuals.

ARIZONA

New Law Provisions for Arizona State Continuation

• Standard Cobra provision for 20 or more employees in a group.

• State continuation for groups under 20 employees is not available in this state. An employee can try to purchase an individual policy, short term policy or enroll in the HIPPA Portability plans.
• Portability Plan is a guarantee issue. Application must be sent in to the carrier before your group or COBRA ends. A carrier must receive your application no more than 63 days after your group or COBRA coverage ends. For more details as to plan benefits and application see the link below. You may also contact our office for further details.