CHAPTER 1202A. TEMPORARY EXTENSION OF ELECTION PERIOD FOR CONTINUATION OF CERTAIN COVERAGE

INSURANCE CODE

TITLE 8. HEALTH INSURANCE AND OTHER HEALTH COVERAGES

SUBTITLE A. HEALTH COVERAGE IN GENERAL

CHAPTER 1202A. TEMPORARY EXTENSION OF ELECTION PERIOD FOR

CONTINUATION OF CERTAIN COVERAGE

For expiration of this chapter, see Section 1202A.002.

Sec. 1202A.001. EXTENSION OF ELECTION PERIOD. (a) For the

purposes of this section, an "extended election eligible

individual" means an employee, member, dependent, or enrollee:

(1) who became eligible for continuation coverage due to

involuntary termination, other than involuntary termination for

cause, under Subchapter F, Chapter 1251, or Subchapter G, Chapter

1271, at any time during the period that begins on September 1,

2008, and ends on February 16, 2009;

(2) who did not elect such coverage or whose elected

continuation coverage lapsed or was canceled without

reinstatement for a reason other than exhaustion of the maximum

period of continuation coverage allowable under law; and

(3) whose involuntary termination on which the eligibility is

based occurred during that same period.

(b) Notwithstanding Section 1251.253 or 1271.301, an extended

election eligible individual may elect continuation coverage

under this section beginning on the effective date of S.B. No.

1771, Acts of the 81st Legislature, Regular Session, 2009, and

ending on the 60th day after the date on which the notification

required by Subsection (e) is provided to the individual.

(c) The period of continuation coverage for an extended election

eligible individual who elects continuation coverage begins with

the first period of coverage beginning on or after the effective

date of S.B. No. 1771, Acts of the 81st Legislature, Regular

Session, 2009, and does not extend beyond the date the period of

continuation coverage would have ended if the coverage had been

elected during the election period required under the law as it

existed before the effective date of S.B. No. 1771, Acts of the

81st Legislature, Regular Session, 2009.

(d) With respect to an individual who elects continuation

coverage under Subsection (b), the period beginning on the date

the individual first became eligible for continuation coverage

and ending on the first day of the 60-day election period

described by Subsection (b) shall be disregarded for purposes of

determining a 63-day period referred to in 29 U.S.C. Section

1181(c)(2), 42 U.S.C. Section 300gg(c)(2), 26 U.S.C. Section

9801(c)(2), and Sections 846.202(d), 1501.102, and 1506.001(8).

(e) Not later than the 60th day after the effective date of S.B.

No. 1771, Acts of the 81st Legislature, Regular Session, 2009, an

employer or group policy or contract holder shall provide notice

to any former employee, member, dependent, or enrollee who is an

extended election eligible individual that includes:

(1) a description of the extended election period available to

the individual under this section;

(2) a description, displayed in a prominent manner, of the

individual's right to a reduced premium and any conditions on

entitlement to the reduced premium under the American Recovery

and Reinvestment Act of 2009 (Pub. L. No. 111-5);

(3) a form that allows the individual to request treatment as an

assistance eligible individual, as defined by the American

Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5), to

whom the premium subsidy would apply;

(4) the amount continuation coverage will cost and the period of

coverage available;

(5) an election form that includes the return address and the

due date for making the election; and

(6) notice that if the individual is entitled to the reduced

premium and later becomes eligible for other group health plan

coverage or Medicare, the individual must notify the employer in

writing or the individual may be subject to a tax penalty.

Added by Acts 2009, 81st Leg., R.S., Ch.

550, Sec. 1, eff. June 19, 2009.

Sec. 1202A.002. EXPIRATION OF CHAPTER. This chapter expires

September 1, 2013.

Added by Acts 2009, 81st Leg., R.S., Ch.

550, Sec. 1, eff. June 19, 2009.