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This compliance alert is brought to you courtesy of The Partners Group and member company, Kerr-Cruickshank, Inc. We are a multi-specialty insurance and consulting
firm that offers creative employee benefits solutions to our customers. As a valued client or associate, we feel this compliance update provides valuable information to you.
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To Our Valued Clients:
Important Information For Employers with Less Than 20 Employees: State Continuation Coverage Subsidy
The Oregon Insurance Division has posted an update addressing the COBRA expansion subsidy for state continuation coverage required by the American Recovery and Reinvestment Act of 2009. This update can be viewed at the following website:
http://www.cbs.state.or.us/external/ins/consumer/consumer-issues/federal-stimulus-info/federal-stimulus-qa.html
State Continuation coverage is only available to terminated employees of employer groups with less than 20 employees.
The Insurance Division is stating that "insurers must accept the 35 percent share of the premium as payment of the full premium, and not require employees to pay 100 percent of the premium," and, "insurers (not employers) collect
the 65 percent subsidy from the federal government."
The Insurance Division has not issued guidance as to how this is to be accomplished. We recommend that you contact your billing representative at the carrier for information on how to administer this change.
Please Note: If you have had 20 or more employees during the prior calendar year this subsidy update does not apply to you. This notice is specifically for employers with fewer than 20 employees who are subject to State Continuation
Coverage.
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