Oregon State Continuation Plans for Small Groups Not Subject to Federal COBRA

Recognizing the need for changes to state law to allow Oregonians to obtain the full advantage of the federal subsidy, the Oregon legislature enacted HB 2433. HB 2433 and follow-up rule-making by the Oregon Department of Consumer Business Services (DCBS) achieves the following:

• Extends the amount of time former employees can continue coverage through the state continuation program from six months to nine months. This gives eligible Oregonians the opportunity to receive the full nine months of premium assistance.
• Allows an independent election of coverage by each qualified beneficiary.
• Creates a second election opportunity for state continuation coverage for AEIs who experienced a qualifying event on or after Sept. 1, 2008 and before the effective date of HB 2433 and either did not elect or whose continuation coverage ended, e.g., lapse due to nonpayment, and/or expiration of six month coverage period.
• Specifies that enrollees who take advantage of the second election opportunity be treated as having continuous coverage for purposes of calculating creditable coverage.
• Insurers subject to continuation of coverage provisions are now required to provide a notice explaining state continuation of benefits directly to individuals losing group coverage, for any reason other than replacement of their group coverage, within ten days following the date of any administrative action taken by an insurer to initiate or document the loss of coverage.