Arkansas officials offer partial help on health care coverage questions

A press release from the Arkansas Insurance Department about the department’s ability to answer questions from Arkansans about financial assist with the continuation of health care coverage is only half correct.

Inside the $787 billion federal stimulus bill signed into law Feb. 17 is a provision that expands COBRA coverage that could help the unemployed better afford continued health care coverage. COBRA — named for the Consolidated Omnibus Reconciliation Act of 1986 — is a federal statute that provides workers and their families with access to 18 months of health benefits from their previous employer. However, the former employee must pay the portion of what the employer once paid.

The new legislation would fund 65% of the COBRA premium for those who became eligible for COBRA coverage between Sept. 1, 2008 and Dec. 31, 2009.  Also, the legislation gives the recently unemployed a second chance to enroll in COBRA coverage.

However, there are numerous “scenarios popping up where that (new COBRA amendment) doesn’t provide clear answers” on eligibility, said Stephanie Freeman, an agent with Konecny Insurance Services in Fort Smith.

According to a Mar. 17 notice from the Arkansas Insurance Department, the agency is “ready to assist Arkansans with questions they may have about COBRA and other state group continuation coverage for workers who lose or may have lost their jobs.”

However, the state is providing answers only to those who were eligible for health care coverage assistance under an Arkansas law directed at employers with 19 or fewer employees. Under that law, an employee involuntarily terminated can elect to continue health coverage up to 120 days, but the employee must pay 100% of the premium, Freeman explained.

The City Wire was told Wednesday by an Arkansas Insurance Department employee that questions about changes to federal COBRA provisions, which is likely to apply to a majority of Arkansans recently laid off, should be directed to the federal Department of Labor. (That toll-free number is: 866.444.3272)

A benefits advisor with the Department of Labor said Wednesday that employers should notify employees of eligibility no later than April 30. Anyone who believes they might be eligible but don’t receive a notice from their former employer should send a written note to the employer requesting classification as an “assistance-eligible individual,” noted the DOL advisor.

The Department of Labor has made available this Web site for employers and others with questions about the COBRA law change.