

		WellPath Clarifies Subsidy Administration for Small Employers Offering State Continuation Coverage WellPath recently outlined new procedures that will help small employers with administration of the COBRA/State Continuation subsidy initiated as part of the American Recovery and Reinvestment Act of 2009. The following is a brief summary of WellPath’s subsidy administration process for small employers who are subject to North Carolina State Continuation laws. Subsidy Election Notice Prior to April 18, 2009, WellPath sent subsidy notices/election forms to all eligible individuals of small employer groups who lost their health coverage between September 1, 2008, and February 16, 2009. The notice informed the individuals of the availability of the 65% premium subsidy and advised them to contact their former employer with any questions regarding State Continuation coverage. Employee Election of the Subsidy In order to elect the state continuation subsidy, qualified beneficiaries must complete their Election Form and Request for Treatment as an Assistance Eligible Individual, and submit both directly to their former employer. Upon receiving such forms, the employer must forward them to WellPath at the address below: WellPath Enrollments P.O. Box 7751 London, KY 40742 The employer may also fax the forms to (866) 506-5256. Payment of Premiums For individuals eligible to receive the 65% premium subsidy, WellPath will continue to bill the employer for 100% of the group premium. However, the employer only needs to collect 35% of the premium from the eligible individual(s) and forward it to WellPath. At that point, WellPath will claim a tax credit for the subsidy received by the eligible individual(s) and display on the employer’s next bill a credit for 65% of the premium. Please note that in order to collect the subsidy from the government, WellPath must substantiate the total premium and the amount of the subsidy. If an enrollee who qualifies for State Continuation benefits either chooses to waive the subsidy or is ineligible for the subsidy, that individual will be invoiced on the employer’s standard invoice for 100% of the billed charges. Employer Attestation WellPath may require employers to complete an attestation form verifying that individuals who elected continuation coverage are eligible to receive the 65% subsidy. If requested, please complete these forms and return them promptly to WellPath at the address or fax number listed above. Eligibility for Other Group Health Plan Coverage or Medicare If someone contacts the employer to inform that they are eligible to receive other group health coverage or Medicare, the employer must immediately provide this information (including the date they became eligible for other coverage) to WellPath. Should you have any additional questions about the subsidy administration, please contact our office at 919-403-1986. Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.
May 12, 2009 Hill, Chesson & Woody Employee Benefit Services 194 Finley Golf Course Road, Suite 200, Chapel Hill, NC 27517 Phone: 919.403.1986 Fax: 919.869-2063 www.hcwbenefits.com