COBRA Control Services, LLC

The Aetna announced yesterday it would no longer provide COBRA administration services as described below…

COBRA Control Services is available with plenty of capacity to support employers who need to replace Aetna’s COBRA administration services, and COBRA Control Services can have an employer group up and running in a day or so with complete administration services. Simply call COBRA Control Services at: 1-888-887-6187 or emal us a info@cobracontrol.com for more information.

COBRA Control Services Pricing (No Monthly Fees):

• Account Setup and Annual Renewal: $95*
• On-Demand Qualifying Event Notices: $25*
• ARRA Notices: $25*

* Fee Discounts Available for Large Groups and Agent/Broker’s “Books of Business.“

SUMMARY OF AETNA NOTICE ANNOUNCING IT IS DISCONTINUING COBRA HOME BILLING SERVICES

Discontinuing Aetna HMO COBRA Home Billing Services
As a result of the COBRA-related changes, Aetna notified us that it will no longer be able to offer its HMO COBRA Home Billing service, effective May 1, 2009. This service provided COBRA eligibility maintenance and billing to its HMO customers upon request at no additional charge.

Employer Notification
In that email, Aetna stated tht those employers who elected Aetna’s COBRA Home
Billing Service will be notified this week of the discontinuation. Aetna also wrote that its notice will provide the option for Aetna, or the employer to administer those services. Apparently, the mailings will include a list of the names and addresses of customers and members currently being home billed if applicable.

Aetna indicated that specific letters will be distributed depending on the size of the employer group:

• 300+ group size
• 51–299 group size with Aetna COBRA brochure
• 20–50 group size with Aetna COBRA brochure
• 1–19 group size in the states where Aetna is required to administer state continuation* for the employer – States include AR, CA, FL, KS, KY, MD, MS, NE, NH, NV, OK, RI, and VT.
• 1 – 19 group size in the states where the employer is required to administer state continuation* – States include CO, CT, GA, HI, IA, IL, IN, LA, MA, ME, MN, MO, NJ, NY, NM, NC, ND, OH, OR, SC, SD,TN,TX, UT, VA, WA, WV, WI, WY and DC.
• 1-19 group sizes in the states that have no continuation* –States include AK, AL, AZ, DE, ID, MI, MT, and PA.

*State designations are subject to change.

Federal and State Continuation Requirements

Employers with 20 or more employees
Federal COBRA rules apply to group sizes over 20 employees who maintain group health plans. Employers are responsible for administering COBRA, although they may designate another organization (such as Aetna) to administer the program for them. As a result of the ARRA, employers are responsible for funding the subsidy, and are reimbursed through a payroll tax credit.

Employers with less than 20 employees
Many states require continuation of group coverage for terminated employees for group sizes under 20 lives. The ARRA mandates the subsidy for these members as well, but requires carriers, such as Aetna, to fund the subsidy, and then be reimbursed through the carrier’s payroll tax credit. In addition, 13 states require that the carrier handle the administration of state continuation, while 30 states require the employer to administer state continuation. (The remaining balance of 8 states are not affected by this
legislation).

Aetna announced it is making the necessary process changes to enroll assistance eligible individuals in state continuation, accept their 35 percent premium payments and administer the premium subsidy, where applicable.

State Continuation Employer Mailings
Aenta indicatEd that its mailings to employer groups with less than 20 employees to assure compliance with the ARRA are underway and will be distributed this week. Apparently, one set of mailings is aimed at employers in 13 states where Aetna must administer the state continuation. Meanwhile, another set is aimed at employers in 30 states where the employer must administer the state continuation. In both cases, Aetna noted it will need to record terminated employee names and addresses and is responsible for applying for the payroll tax credit for the ARRA subsidy.

States where the employer administers state continuation
In the following states, Aetna wrote that the employer is responsible for administering state continuation*: CO, CT, GA, HI, IA, IL, IN, LA, MA, ME, MN, MO, NJ, NY, NM, NC, ND, OH, OR, SC, SD,TN,TX, UT, VA, WA, WV, WI, WY and DC. Aetna stated that employers in these states will receive the following materials:

• Employer letter explaining the subsidy
• Instructions sheet requesting information
• Employer Attestation – ARRA Employee Subsidy – Form
• ARRA State Continuation Coverage Supplemental Notice for the employer to distribute to individuals on state continuation

States where Aetna administers state continuation
Aetna stated it administers state continuation in the following states, *: AR, CA, FL, KS, KY, MD, MS, NE, NH, NV, OK, RI, and VT. Aetna further stated that employers in these states will receive the following materials:

• Employer letter explaining the subsidy
• Instructions sheet requesting information
• Employee on State Continuation Form
• Employer Attestation – ARRA Employee Subsidy – Form
• ARRA State Continuation Coverage Supplemental Notice for the employer to distribute to individuals on state continuation

*State designations are subject to change.

COBRA Control Services is available with plenty of capacity to support employers who need to replace Aetna’s COBRA administration services, and can have an employer group up and running in a day or so. Simply call COBRA Control Services at: 1-888-887-6187 or emal us a info@cobracontrol.com.

The information contained herein is for informational purposes only and is not intended as legal or tax advice, nor is it intended to advise you of your obligations under ERISA, COBRA, HIPAA or the American Recovery and Reinvestment Act of 2009. It should not be used or relied upon as the basis for any action or choosing inaction. Consult an experienced benefits attorney or tax professional about your specific situation before deciding on any course of action or inaction.

This material is for informational purposes only and contains just a partial, general description of program benefits. Plans and programs may not be available in all service areas.

Aetna is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies. Those companies include: Aetna Health Inc., Aetna Health of California Inc., Aetna Dental of California, Inc, Aetna Health of the Carolinas Inc., Aetna Health of Illinois Inc., Aetna Health Insurance Company of New York, Aetna
Health Insurance Company and/or Aetna Life Insurance Company (Aetna). In MD, by
Aetna Health Inc., 151 Farmington Avenue, Hartford, CT 06156.

Material in email does not constitute a contract or legal advice and is subject to change. COBRA Control Services, LLC is not affiliated with Aetna or Aetna-related company.