May 19, 2021
American Rescue Plan Act: State Continuation Update
On March 31, we provided details about the COBRA subsidy for our employer groups in which we administer COBRA benefits.
Since that time, we’ve worked diligently to address roles and responsibilities related to the Act and State Continuation* for all applicable fully insured employer groups, including those that self-administer federal COBRA and/or are subject to state continuation of coverage requirements. In Texas, this refers to Small Groups (1-50).
While details are forthcoming, the following state continuation processes have been confirmed:
- Blue Cross and Blue Shield of Texas (BCBSTX) is working to identify fully insured members that may be considered assistance eligible individuals.
- BCBSTX will distribute member notices directly to affected fully insured members by May 31, 2021.
- BCBSTX will work with fully insured groups to confirm eligibility for members that may be considered assistance eligible individuals.
- BCBSTX will be responsible for the assistance eligible individuals’ subsidized premium and, thus, BCBSTX will take the applicable payroll tax credit.
Please stay tuned for additional details in the coming weeks. We appreciate your patience and understanding as we make changes in our business to support implementation in accordance with the American Rescue Plan Act.
*State Continuation will vary by plan/location.
