OSPS E-News ~ FW: Signing the American Rescue Plan Act

Tue May 11 14:01:26 PDT 2021

Forwarded on behalf of PEBB:

From: PEBB - Public Employees' Benefit Board <pebb at service.govdelivery.com>
Sent: Thursday, May 6, 2021 12:21 PM
To: Clausen Sheila C <SHEILA.C.CLAUSEN at dhsoha.state.or.us>
Subject: Signing the American Rescue Plan Act

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The American Rescue Plan Act of 2021 (ARP) was signed on March 11, 2021. This new federal law subsidizes the full COBRA premium for "Assistance Eligible Individuals" (AEI). This premium assistance is available April 1, 2021 through September 30, 2021.

An AEI qualifies for COBRA premium assistance if they:
*         lose benefits due to an involuntary employment termination or work hours reduction, AND
*         are not eligible for other group health coverage (a new employer or spouse's employer plan), AND
*         are not eligible for Medicare, AND
*         are eligible and elect COBRA during the subsidy period.

Employers are responsible for paying 100 percent of an AEI's COBRA premium during the subsidy period (April 1, 2021 through September 30, 2021). You will be reimbursed by the federal government through:

  *   a credit against payroll taxes, and (if applicable)
  *   an overpayment refund for credit amounts exceeding payroll taxes.

Employers that don't satisfy COBRA continuation coverage requirements may be investigated by the Department of Labor. They may also be subject to an excise tax under the Internal Revenue Code.

PEBB currently contracts with BenefitHelp Solutions (BHS) for our COBRA needs.  Together we have developed the following process to determine subsidy eligibility:

  *   BHS will send legally required COBRA notices to all current COBRA members and those newly eligible, no later than May 31, 2021.
  *   BHS will also send an attestation form. This form outlines the subsidy eligibility requirements. The beneficiary will need to sign and date the form attesting that they are eligible for the subsidy program if they wish to enroll.
  *   BHS will send PEBB a weekly list of members who wish to enroll and have attested they are eligible for the subsidy. We will send you your list of members, asking you to note their termination reasons (involuntary, voluntary, or reduction in hours) and return your list to PEBB.
  *   PEBB will send the lists to BHS.
  *   BHS will enroll those you have confirmed as eligible (referred to as "eligible beneficiaries") into the COBRA subsidy program.
  *   BHS will enroll eligible beneficiaries (and their dependents, as applicable) retroactively effective April 1, 2021.

This completes the first part of the process. We are currently working out the invoice and billing process.  We will provide those details once we have a solution in place.

Thank you for your patience as we work through compliance with this law. Our number one goal is to create a simple process with the least amount of additional work for you.

If you have questions about eligibility for the subsidy, please call BHS at: 1-800-556-2230.

If you have questions about the process we have described here, please email Sheila Clausen, OEBB/PEBB Policy Analyst at: SHEILA.C.CLAUSEN at dhsoha.state.or.us<mailto:SHEILA.C.CLAUSEN at dhsoha.state.or.us>.

Ali Hassoun
Director
Oregon Educators Benefit Board / Public Employees' Benefit Board
Oregon Health Authority - Health Policy & Analytics

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This email was sent to sheila.c.clausen at dhsoha.state.or.us<mailto:sheila.c.clausen at dhsoha.state.or.us> from the Oregon Health Authority or Oregon Department of Human Services * 500 NE Summer Street * Salem OR 97301 * 503-947-2340 (OHA) 503-945-5600 (DHS).
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