There is new Virginia legislation that affects Small Group employers. The Virginia Code was amended in the 2014 General Assembly to adjust the State Continuation requirements for Small Groups.
The new language requires Small Group employers to offer continuation of benefits and removed the option for employers to offer Individual/Conversion plans instead. This provision shall not be applicable if the group policyholder is required by federal law to provide for continuation of coverage under its group health plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).
This impacts your Small Group employers who are required to offer State Continuation and requires them to provide written notice to their impacted employees.
Please review the entire Code for full disclosure. Highlighted below are some key excerpts:
- The insured’s present coverage shall continue under the policy for a period of 12 months immediately following the date of the termination of the person’s eligibility, without evidence of insurability, subject to certain requirements.
- The group policyholder shall provide each employee or other person covered under such a policy written notice of the availability of continuation of coverage and the procedures and time frames for obtaining continuation of the group policy. Such notice shall be provided within 14 days of the policyholder’s knowledge of the employee’s or other covered person’s loss of eligibility under the policy.
We encourage you to read this information. If you have any questions, please contact us.
Read § 38.2-3541. Continuation on Termination of Eligibility here.
Contact Steven G. Cosby, MHSA with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.
