COBRA, HIPAA, and Other Required Notices

Although state government takes the primary role in regulating insurance, the federal government is also involved in the health insurance field.  Below is information we feel has the biggest impact on your benefits.  This is not a comprehensive list of laws affecting your benefits, but a list we feel will be most helpful to you.

1.  Medicare Prescription Drug Improvement and Modernization Act of 2003.  In most cases, companies are required to distribute annual Medicare Part D Certificate (we place your personalized document here)  to their employees and their covered dependents enrolled in our medical plan.  This Notice is required as a result of the availability of Medicare Part D prescription drug plans.  This Notice is only applicable if you, or a dependent on your medical plan, are eligible for Medicare coverage.  We will update these forms at the end of each calendar year.

The purpose of the Notice is to confirm that your present prescription drug plan through our medical insurance plan provides "Creditable" coverage.  This means that the benefits of our plan meet or exceed the benefits of the Medicare Part D plans that are being offered, and you will not incur a penalty if you choose coverage under a Medicare Part D plan at a later date. Please retain this Notice for future use, if necessary.

2.  The Health Insurance Portability and Accountability Act (HIPAA)
HIPAA was enacted in 1996 with the purpose of expanding access to health insurance.  HIPAA represented a major change in the regulatory environment because, although Congress had previously passed laws that affected health insurance in various ways, HIPAA was the first major piece of federal legislation that regulated health insurers. 

HIPAA contains a great many provisions addressing various areas and issues in health insurance.   Some of the key provisions are listed in this document HIPAA Notice  (we place an informative document here). 

3.  The Consolidated Omnibus Budget Reconciliation Act (COBRA)
COBRA requires employers with 20 or more employees to allow continuation of group health care coverage for 18 months, at the employee's expense, for employees and their dependents who leave the company for any reason other than gross misconduct.

When you are first eligible for insurance we are required to provide you with COBRA Information. COBRA Initial Notice (We place your personalized document here). 


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