FY2011 Health Benefits Booklet

Maryland State Employees and Retirees 59
COBRA Subsidy
As part of the American Recovery and
Reinvestment Act, effective March 1, 2009,
Employees and their dependents who
have lost health coverage due to certain
involuntary losses of employment between
September 1, 2008 and March 31, 2010 may
be eligible to receive a 65% COBRA premium
subsidy. There are important details about
this subsidy described in COBRA Election
Notices mailed to COBRA-eligible individuals
and on the Employee Benefits website.
Individuals eligible to receive the subsidy
will receive premium coupons reflecting
the reduced premium amount. Eligibility
for the subsidy will terminate for the
following reasons: the maximum number
of months of subsidized COBRA
coverage received, an individual is
eligible for coverage under any other
group health plan, or an individual is
eligible for Medicare, an individual’s
COBRA eligibility ends.
Those Employees who retire,
resign or terminate employment
voluntarily, divorce, lose dependent
eligibility status or experience
another qualifying event will not be
eligible for the subsidized coverage.
You may still elect COBRA, but
you will be responsible for the
full premium rate plus the 2%
administrative fee.
If you wish to continue, you must complete a Direct Pay
Enrollment Form and submit it to your Agency Benefits
Coordinator. This Enrollment Form should be completed as
soon as you know you will miss two pay periods or more. The
Enrollment Form will not be accepted any later than 60 days
after the effective date of the LAW.
You may continue any or all of your current health benefit
plans, or you may reduce your coverage level when enrolling
for LAW benefits. However, you may not change plans until
the next Open Enrollment period or within 60 days of a
qualifying event, the same as an Active Employee.
Once enrolled in coverage while on LAW, you are responsible
for the full premium cost unless the LAW is due to a jobrelated
accident or injury or an approved FMLA leave. If
you are entitled to the State subsidy, your Agency Benefits
Coordinator must have the Agency Fiscal Officer complete
the applicable section of the Direct Pay Enrollment Form. The
Employee Benefits Division will bill you for the appropriate
amount due.
Coupons and Payments
All State Employees who are on a Leave of Absence Without
Pay will be mailed payment coupons, which must be included
with their premium payments at the address shown on the
letter included with your premium coupons. Your benefits will
be effective as of the date noted on your letter, but no claims
will be paid until the Employee Benefits Division receives your
payment. Payments are due the first of every month with a
30-day grace period.
All benefits are inactive until payment is received for each
month. Payment may be made in advance to cover any or
all coupon(s) received, but must be made in full monthly
increments. If payment is not received by the end of the
30-day grace period, your coverage will be cancelled. There
will be a break in your coverage until you return to work
and request re-enrollment in health benefits. This request for
re-enrollment must be made through your Agency Benefits
Coordinator within 60 days of your return to work.
Payment deadlines are strictly enforced. If you do not receive
these coupons within one month of signing your Enrollment
Form or if you change your mailing address, please contact
your Agency Benefits Coordinator or the Employee Benefits
Division immediately.
Military Leave Employees Important Information
for Your Health While on Military Leave and When
Returning to State Service
Employees on Active Duty
In recognition of the tremendous service of our Employees
who serve as members of the armed forces, the State of
Maryland permits Employees on active military duty to elect
to continue their medical, dental, and prescription benefits at
the same coverage level in effect just prior to the start of their
military duty. The State will pay the full cost of coverage: both
the Employee and State share of premiums. State Employees
on active military duty may elect to continue coverage for
accidental death and dismemberment insurance, life insurance,
or flexible spending accounts by remitting payment for this
coverage directly to the Employee Benefits Division. If elected,
Employees will be billed by the Direct-Pay unit through
payment coupons.
To continue your benefits under an Active Military Leave
of Absence, you will need to complete the “LAW - Military
Notification Form.” Please return this form to your Agency
Benefits Coordinator along with a copy of your active military
orders. If these orders expire, you will need to provide your
Agency Benefits Coordinator with updated orders in order
to continue Active Military Leave coverage with the State of
Maryland.
If you have questions concerning your benefits while on
active military leave, please contact your Agency Benefits
Coordinator.
Employees Returning from Active Duty
When an Employee is returning from active duty, he/
she should contact his/her Agency Benefits Coordinator to
complete an Active Enrollment Form. The completed Regular
Enrollment Form should be sent to the Employee Benefits
Division along with the Employee’s discharge paperwork.
COBRA and Continuation of Coverage
You and/or your dependents may elect to continue your
Health, Prescription Drug, Dental, and Health Care Spending
Account participation, using post-tax premium payments, for
a timeframe determined in accordance with the applicable
Federal regulations.
IMPORTANT Notices
and Information