File No. 34075
This rule was published in the October 1, 2010, issue (Vol. 2010, No. 19) of the Utah State Bulletin.
Insurance, Administration
Rule R590-253
Utah Mini-COBRA Notification Rule
Notice of Proposed Rule
(Repeal)
DAR File No.: 34075
Filed: 09/14/2010 04:07:22 PM
RULE ANALYSIS
Purpose of the rule or reason for the change:
This rule was adopted to provide information and forms necessary to help a person qualified for and applying for COBRA insurance receive a subsidy to help pay for the premium. This was a result of the American Recovery and Reinvestment Act (ARRA) of 2009, Section 3001(a)(7). This subsidy was no longer available as of 05/31/2010. As a result, this rule is no longer necessary.
Summary of the rule or change:
This rule was adopted to provide information and forms necessary to help a person qualified for and applying for COBRA insurance receive a subsidy to help pay for the premium. This was a result of the American Recovery and Reinvestment Act (ARRA) of 2009, Section 3001(a)(7). This subsidy was no longer available as of May 31, 2010. As a result, this rule is no longer necessary. Therefore, this rule is repealed it its entirety.
State statutory or constitutional authorization for this rule:
- Section 31A-2-201
Anticipated cost or savings to:
the state budget:
The repeal of this rule will not affect the workload or revenues of the department. Insurers were not required to file forms or fees with the department when the rule went into effect so no additional filings will be required with its repeal.
local governments:
Local governments will not be affected by the repeal of this rule since it dealt solely with the relationship between the department and its health insurance licensees.
small businesses:
Employers will be required to change their current mini-COBRA notification forms to eliminate any reference to the federal subsidy. These forms are not filed with the department. Businesses knew that this law was temporary so probably had a small supply of these forms on hand that they now will have to dispose of. There should be just a small cost in the time it takes to change the form back to the way it was before the subsidy was made available and to make any hard copies they may want to have on hand.
persons other than small businesses, businesses, or local governmental entities:
Insurers will need to change their notification forms to eliminate the reference to the subsidy. They knew that this would be temporary and likely have very few on hand to dispose of and replace. This will be a minor cost to them. There will be some printing and paper costs to replace their current form.
Compliance costs for affected persons:
Insurers and employers will need to change their notification forms to eliminate the reference to the subsidy. They knew that this would be temporary and likely have very few on hand to dispose of and replace. This will be a minor cost to them. There will be some printing and paper costs to replace their current form. The largest financial loss will be to the consumer who has been laid off from work and will now have to pay the full COBRA premium himelf or herself now that the federal subsidies are not available.
Comments by the department head on the fiscal impact the rule may have on businesses:
The cost to employers will be minor as they adjust their notification forms to eliminate the reference to a premium subsidy and eliminate current forms. Whatever costs they do have will be in printing and paper.
Neal T. Gooch, Commissioner
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
InsuranceAdministration
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201
Direct questions regarding this rule to:
- Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
11/01/2010
This rule may become effective on:
11/08/2010
Authorized by:
Jilene Whitby, Information Specialist
RULE TEXT
R590. Insurance, Administration.
[
R590-253. Utah Mini-COBRA Notification Rule.
R590-253-1. Authority.
(1) This rule is promulgated pursuant to Subsection
31A-2-201 wherein the commissioner may make rules to implement
the provisions of Title 31A.
R590-253-2. Purpose and Scope.
(1) The purpose of this rule is to ensure that all
persons who are eligible for health insurance continuation
coverage under the American Recovery and Reinvestment Act of
2009, ARRA, Section 3001(a)(7) receive the necessary information
and forms that will assist them in making a decision to elect
continuation coverage of their health insurance coverage under
Utah's mini-COBRA law.
(2) This rule applies to all accident and health insurers
doing business in Utah that are required to provide continuation
coverage pursuant to Sections 31A-22-722 and 722.5.
R590-253-3. General Instructions.
(1) An accident and health insurer shall provide the Utah
mini-COBRA Continuation Coverage Election Notice for individuals
eligible for Utah mini-COBRA. The notice can be downloaded from
the Department's website at www.insurance.utah.gov.
(2) For individuals eligible for Utah mini-COBRA from
February 17, 2009 through December 31, 2009, an accident and
health insurer shall:
(a) mail the notices required by R590-253-3(1) to an
individual:
(i) within seven days after being contacted by an
individual or the individual's employer on or after April 6,
2009; or
(ii) no later than April 10, 2009 for an insured whose
employer or the individual contacted the insurer prior to April
1, 2009; or
(b) mail the notices required by R590-253-3(1) to all
employers whose coverage is subject to 31A-22-722:
(i) no later than April 10, 2009;
(ii) on the plan's anniversary renewal; and
(iii) shall include a statement of the employer's
obligation on the monthly notice of premium payments.
(c) An accident and health insurer who elects to provide
notification under R590-253-3(2)(b) is responsible to assure the
employer has provided notification to its employees who are
eligible as provided by Section 31A-22-722 and the American
Recovery and Reinvestment Act of 2009, Pub. S. 111-5.
(3)(a) For individuals eligible for Utah mini-COBRA from
September 1, 2008 through February 16, 2009, the notices in
R590-253-3(1) shall be mailed after being contacted by an
individual or the individual's employer that the individual
wants to take advantage of the second election period to extend
the health insurance coverage provided by the employer Section
31A-22-722.5.
(b) The notice shall be mailed:
(i) within one business day after being contacted by an
individual or the individual's employer on or after April 6,
2009; or
(ii) no later than April 9, 2009 for an insured whose
employer or the individual contacted the insurer prior to April
6, 2009.
R590-253-4. Penalties.
A person found, after a hearing or other regulatory
process, to be in violation of this rule shall be subject to
penalties as provided under 31A-2-308.
R590-253-5. Severability.
If any provision of this rule or its application to any
person or circumstance is, for any reason, held to be invalid,
the remainder of this rule and its application to other persons
and circumstances are not affected.
KEY: mini-COBRA insurance
Date of Enactment or Last Substantive Amendment: July 1,
2009
Authorizing, and Implemented or Interpreted Law:
31A-2-201 ]
Additional Information
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2010/b20101001.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov.