June 30, 2014 – MNsure Offers One-Time Special Enrollment to Certain COBRA Beneficiaries
Earlier this month, we issued a Client Alert regarding public insurance exchanges offering a one-time special enrollment opportunity for certain persons on COBRA (available here). We noted that the one-time special enrollment opportunity was available from the federally-facilitated exchange and from state-operated exchanges if they adopt a rule similar to the one announced by CMS. At the time, MNsure (Minnesota’s exchange) had not yet adopted the one-time special enrollment period for COBRA beneficiaries. Last week, MNsure announced, via the distribution of a “MNsure Broker Update,” that it is providing a one-time special enrollment period for current COBRA beneficiaries until July 15, 2014. The MNsure Broker Update is reproduced below:
June 24, 2014
Special Announcement – Special Enrollment Period for consumers who wish to cancel COBRA coverage
MNsure is offering an optional one-time Special Enrollment Period for consumers who wish to cancel COBRA coverage prior to benefits being exhausted. Consumers who wish to benefit from this Special Enrollment Period must enroll and pay for coverage on a plan through MNsure by July 15, 2014.
MNsure is concerned that notices consumers may have received about COBRA when they first enrolled in COBRA did not sufficiently address Marketplace (MNsure) options for COBRA beneficiaries. Due to this concern and in accordance with 45 CFR 155.420(d)(9), MNsure is offering a one-time limited Special Enrollment Period for consumers who currently have COBRA coverage, wish to cancel that COBRA coverage prior to benefits being exhausted, and enroll in a MNsure qualified health plan. Consumers must enroll and pay for a plan no later than July 15, 2014 to be eligible for this Special Enrollment Period. Coverage under their newly chosen MNsure plan would take effect on August 1st. Consumers should be aware that any out-of-pockets costs already incurred toward a COBRA policy will not count toward new out-of-pocket costs under their new MNsure plan.
After this one-time Special Enrollment period is completed, the following rules will apply. COBRA coverage is considered Minimal Essential Coverage (MEC). Therefore, once open enrollment closes, individuals enrolled in COBRA coverage are not able to switch to other coverage until their COBRA benefits are exhausted (the exception are individuals eligible for Medical Assistance and MinnesotaCare).Outside of open enrollment, consumers have two options regarding COBRA coverage:
1. Decline the initial offer of COBRA coverage and qualify for a Special Enrollment Period.
2. Wait until COBRA benefits are exhausted and qualify for a Special Enrollment Period.
Consumers do not need to take any action if they wish to keep their COBRA plan.
Consumers who wish to take advantage of this opportunity should begin by calling the MNsure Contact Center at 1-855-366-7873 and letting a representative know they are interested in a COBRA Special Enrollment Period. Consumers must enroll and pay for a plan no later than July 15, 2014 to be eligible.
Brokers who would like to assist clients with their plan options may call the contact center with their client on the line. An Agent of Record form can also be submitted if unable to be attached to the application at the time of enrollment. The forms and instructions can be found on our Broker Resource Page.
If you would like more information or assistance in developing your strategy in response to this recent guidance, please contact us.
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