On February 17, 2009, the American Recovery and Reinvestment Act of 2009 was signed into law. The new law provides premium assistance to individuals who lose their group health coverage as a result of involuntary termination of employment and includes a federal subsidy for continuation coverage premiums for up to nine months. There are different rules for the subsidy depending on a group’s total number of employees:

• Groups with 20 or more employees: These groups are covered under the federal COBRA law and will need to administer the subsidy and collect the subsidy reimbursement through a payroll tax credit. These groups had until April 18, 2009 to issue a letter to eligible individuals outlining their rights and responsibilities. View COBRA regulations information. 
  
  
• Groups with fewer than 20 employees: These groups are covered by state continuation law, rather than COBRA. Medica has prepared a packet of information outlining the process for groups of this size. Employer groups had to respond to Medica by May 1, 2009, in order for Medica to administer the premium subsidy. The packet of information includes the following materials: 
  • Small group employer customer letter
  • Premium subsidy employer action steps
  • Premium subsidy employer guide (Steps 1 through 6)
  • Frequently Asked Questions (FAQs)
  • Forms: 
    • Attestation Form Concerning Employer Size And Subsidy Administration
    • Continuation Eligible Individual List for reporting continuation eligible individuals to Medica
    • Assistance Eligible Individuals (AEI) Status Request & Continuation Enrollment Form

If you are a group with fewer than 20 employees and have not received a packet, please contact your Medica representative.