Blue Cross and Blue Shield of Illinois

 

June 6, 2014

Special Enrollment Period for COBRA Eligible Individuals

Recently, the Centers for Medicare and Medicaid Services (CMS) announced a new exchange Special Enrollment Period (SEP) for people eligible for or enrolled in Consolidated Omnibus Budget Reconciliation Act (COBRA) plans, including their beneficiaries. This SEP ends July 1, 2014.

The COBRA SEP has advantages for both employers and their COBRA population. As COBRA-eligible people transition from group to individual health coverage, employers may reduce their COBRA rolls and associated expense. In turn, COBRA-eligible individuals have the opportunity to choose health coverage that fits their needs and budget and, if eligible, receive a federal premium tax credit to reduce their cost of coverage (which can be applied for through the Blue Cross and Blue Shield of Illinois [BCBSIL] Retail Shopping Cart).

Until July 1, 2014, your COBRA-eligible people may activate their SEP and enroll in BCBSIL individual health plan in one of several ways:

  • Through the BCBSIL Retail Shopping Cart at bcbsil.com
    • Normal coverage effective date rules will apply. For example, if the application happens between the first and 15th of the month, the effective date is the first of the next month. If the application occurs after the 15th of the month, the effective date is the first of the second following month.
    • When filling out the application, it is important that applicants indicate COBRA under the Other Qualifying Event SEP, option #11. If this is not noted, the application will be withdrawn.
    • After May 31, 2014, the applicant will be directed to call the local BCBSIL service center or their broker when they choose option #11. Special assistance will be required to activate their COBRA SEP.
  • Through an insurance agent
  • Via a paper application
  • Through Get Covered Illinois, the official Health Insurance Marketplace
    • Call 800-318-2596 to activate the SEP for COBRA benefits and the Marketplace. (The applicants will need to work directly with the exchange to understand how the coverage effective dates are set.)

If you participate in Blue DirectionsSM for Individual Plan Enrollment, you may have received additional information already.

 
  


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A Division of Health Care Service Corporation, a Mutual Legal Reserve Company,
an Independent Licensee of the Blue Cross and Blue Shield Association.