Health Benefit Protection
   

Flexibility Handbook

 

 

Table of Contents

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Continuation of coverage

You may have the right to some continued coverage for a certain period of time after a qualifying event that makes you, your spouse, or dependents no longer eligible for FlexAbility benefits. Contact your local Human Resources department as soon as possible.

Who is eligible for continuation benefits

Any employee, employee's spouse, or dependent children covered by the group health plan on the day before the qualifying event may be eligible for continued benefits. Exactly who is eligible for continuation and how long they may continue their coverage depends on the type of qualifying event, and whether you are covered under another group plan.

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Employee qualifying events

  • Voluntary or involuntary termination of employment for reasons other than "gross misconduct"
  • Reduction in the number of hours of employment (no longer eligible for benefits)

Dependent qualifying, events

  • Termination of the employee's employment for reasons other than "gross misconduct"
  • Reduction in the number of hours worked by the employee (no longer eligible for benefits)
  • Divorce or legal separation of the covered employee
  • Death of the covered employee
  • Loss of "dependent" status under the plan

This table shows the continuation coverage period for the different qualifying events.

Qualifying Event Beneficiary Coverage
Termination
Reduction in hours
Employee, spouse dependent child 18 months (see note)
Employee entitled to Medicare
Divorce or legal separation
Death of a covered employee
Spouse,
Dependent child
36 months
Loss of "dependent status" dependent child 36 months

Note: A disabled beneficiary may extend benefits to 29 months if disabled at the time of the qualifying event, or if disability occurs at any time during the first 60 days of Continuation of Coverage, and he or she has been determined to be disabled by Title II or XVI of the Social Security Act.

If you have a child or adopt a child during the period of Continuation of Coverage, you may elect to cover that child.

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Coverage under another group plan

Participants who are covered under another group plan are not eligible to continue coverage under the Peace Health Plan. (There may be an exception if a pre-existing condition exclusion applies on your other coverage.)

Continuation benefits during labor strike

If you are on strike, you have certain rights to continuation of coverage. Your union is responsible for collecting your share of the premium charges, and can answer your questions regarding coverage.

Continuation benefits after workplace injury or illness

If you are receiving Workers' Compensation payments and are not actively working the number of hours required to maintain your eligibility, you may qualify for continuation coverage on a self-pay basis.

Continuation application

Your local Human Resources department will send you, your spouse, or your dependent continuation notices within 14 days after they receive information that a qualifying event has occurred.

If a qualifying event occurs that your local Human Resources department would not otherwise know about, you or a family member must notify the Human Resources Department within 60 days after the event has occurred.

You have 60 days from the date that the qualifying event occurs, or from the date that your employer sent the continuation notice, whichever is later, to notify your local Human Resources department that you would like to elect to continue coverage. You, your spouse, or a legal guardian may elect continuation for a minor child.

Continuation coverage begins

Coverage begins on the date that your coverage would have otherwise ended.

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Premium payments

With continuation coverage, you are responsible for the premium payments. The first payment must be received by your employer within 45 days after the date you elect to continue coverage. The first payment must cover the period from the date of the qualifying event to the date you elected to continue coverage.

All subsequent premium payments are due on the first of each month for which you want continuation of coverage. There is a 30-day grace period for premium payments.

Premium rates

Continuation premiums are calculated as 102 percent of the active health plan rate for the same coverage. Premium for a disabled beneficiary increases to 150 percent of the active health plan rate after the 18th month of coverage. If your premium changes, you will be notified 30 days before the change goes into effect.

What coverage apply to the continuation?

During your continuation coverage, you will be able to have the same coverage you had when the event occurred that qualified you for continuation.

Example: If your coverage before the qualifying event included medical, dental, vision, and a health care spending account, then you are eligible for these same coverage during your continuation period.

The same rules that applied to your coverage before continuation went into effect apply to your continuation coverage.

Example: A dependent who is over the age of 23 is choosing continuation and will be moving out of the service area. The dependent may change medical options--for example, from HMO to Catastrophic. The dependent cannot choose medical coverage if he or she was not covered under the medical plan before the qualifying event.

You may elect to change options at three times: the time you choose continuation coverage, during the open enrollment period, or if a change in family status occurs. You may not elect to change options at any other time during your continuation period.

Example: You terminate your employment and elect to continue medical, dental, and vision coverage. A few months later you decide you don't want to continue paying for the vision and dental coverage. To drop these choices you must wait until the next open enrollment period. If a family status change occurs that allows you to drop coverage, however, you could do so outside the normal open enrollment period. (Not wanting to pay for a coverage is not considered a family status change.)

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When does continuation coverage end?

Continuation coverage ends when any one of these conditions is met:

  • The beneficiary (you or your covered dependent) becomes covered under another group plan (there may be an exception if pre-existing limitations apply).
  • Your payments are not made within 30 days of the due date.
  • Your employer ceases to maintain any group health plan.
  • The beneficiary (you or your dependent) becomes entitled to Medicare.
  • The end of your continuation coverage period is reached.

Oregon Portability

If you lose eligibility for group coverage or Continuation continuation coverage by the Plan, you may be eligible for Portability coverage through the Oregon Medical Insurance Pool (OMIP). OMIP is not sponsored or endorsed by the In-Network Plan or PeaceHealth. Rather, OMIP is authorized under Oregon law to provide Portability coverage to certain Oregon residents who have lost coverage under a group health benefit plan.  Upon proper application and the payment of the applicable premiums, Portability coverage with OMIP will generally become effective as of the day following your termination of coverage under the In-Network Plan.

To be eligible for Portability coverage with OMIP, you must meet the following requirements:

  1. You must have been covered under one or more Oregon group health benefit plans for at least 180 days and applied for Portability coverage no later than the 63rd day after termination of your In-Network Plan coverage; and
  2. You must be an Oregon resident and a resident of the Plan’s service area.

You are NOT eligible for a Portability Plan if:

  1. You are eligible for federal Medicare coverage; or
  2. You remain eligible for your prior active group coverage; or
  3. You are covered under another group or individual plan, policy, contract, or agreement providing benefits for hospital or medical care; or
  4. You move out of the State of Oregon

For further information regarding Portability coverage with OMIP, and to receive an application for coverage, call the OMIP administrator, Regence Blue Cross and Blue Shield, at 1-800-848-7280.

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FlexAbility Appeals Procedure

Each benefit plan provides a method for appealing a claim that has been denied.

If your claim is denied, you should appeal to your Claims Administrator first. Some benefits provide an additional appeal to the FlexAbility Plan Administrator if you follow the appeal procedures and still are not satisfied with the Claims Administrator's decision.

Also, if you wish to appeal any decision regarding eligibility, enrollment, or status changes, you may do so by writing to the Plan Administrator.

Send your appeal to:

FlexAbility Plan Administrator
PeaceHealth
15325 SE 30th Place Suite 300
Bellevue, WA 98007

State why you believe the claim should not have been denied, and submit any information, questions, or comments you think are appropriate.

You will receive a response to your appeal from the Plan Administrator by mail within 90 days after the Plan Administrator receives the appeal. If the Plan Administrator needs more than 90 days to review your appeal, you will be notified of the delay and the reasons for it.

If this appeal is denied, you may appeal in writing to the Employee Benefits Committee.

Send your appeal to:

Employee Benefits Committee
PeaceHealth
15325 SE 30th Place Suite 300
Bellevue, WA 98007

The Employee Benefits Committee must respond to your appeal within 90 days, or send you a notice of delay within that same time period. If your appeal is denied by the Employee Benefits Committee, no additional appeals will be considered unless accompanied by additional supporting information.

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Claims Administrators

Each benefit type or plan has its own Claims Administrator, and some have more than one (due to location). When a benefit type has more than one Claims Administrator, where you work will determine which Claims Administrator you use.

Each Claims Administrator has a Customer Service Representative whose job it is to answer members' questions about the plans. If you have any questions or concerns about your benefits or your coverage, call your Claims Administrator's Customer Service Representative, toll-free, for assistance.

The following table is a complete list of all the Claims Administrators for the FlexAbility benefit plans. The Claims Administrators for each benefit are also listed in the section of this handbook that describes the benefit.

If you are an employee of the Corporate Center office but you work at one of the other PeaceHealth locations, your Claims Administrators are the ones at the location where you're currently working.

Your Claims Administrator

Click on your region to see your Claims Administrator Information:

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Coordination of Benefits

If you are covered by two group insurance plans, FlexAbility and your other insurer will work together to pay up to 100% of your covered benefits. This is called "Coordination of Benefits."

One group plan always pays first (primary plan) and the other always pays second (secondary plan).

Primary plan

Your employer's plan is always your primary plan.

If your child is covered by both parents, the parent whose birthday comes first in the year has the primary plan.

For example: Your birthday is April 4 and your spouse's birthday is July 10, so your plan pays first.

If your child has insurance coverage through both parents, and you are divorced, the court decree will often determine which policy is primary. If it doesn't, the parent with custody has the primary plan.

If your child is covered by a parent and a stepparent, the general guidelines are: Parent with custody pays first, spouse of the custodial parent pays second, and the natural parent without custody pays third.

Always let us know as soon as you have a change in health insurance coverage. We can help you determine which plan is primary, so claims payment won't be delayed or confused.

Secondary plan

If FlexAbility is your secondary plan, you still must follow the rules and procedures for your claims to be paid.

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Coordinating claims payment

Most benefit plans will send you an Explanation of Benefits (EOB) whenever a claim is paid or denied. The EOB tells you the amount billed, the amount disallowed, and the amount paid by the insurance company.

When your other company pays first, send your Claims Administrator the itemized bill for services with the EOB you have received from the other company. Usually, that is all your plan will need to process your claim.

When a FlexAbility benefit plan pays first, attach the EOB from your FlexAbility plan to the itemized bill for services and send them both to your other insurer. If you have not received an EOB from your FlexAbility plan, call and ask your Claims Administrator to send you an EOB.

Third-Party Liability

Third-party liability refers to claims that are the responsibility of someone other than you or the insurers under the FlexAbility benefit plans. In these cases, your benefit coverage is secondary. Your Claims Administrator(s) need detailed information from you whenever you use your plan benefits because of a:

  • Motor vehicle accident.
  • Workplace accident, injury, or illness.
  • Injury or illness that may result in a lawsuit, or for which you expect to receive a settlement.

Recovering money from a third party

Your benefit plan may recover money from a third-party, usually an insurance carrier, who may be responsible for paying for your treatment for an illness or injury. The FlexAbility benefit plans may sue in your name, if necessary.

By accepting membership in a benefit plan, you make an agreement that if you receive a settlement for an illness or injury, you must pay us back for the cost of your treatment.

For example: You are injured while on a weekend visit to a coastal resort. You sue, and are awarded $7,500 plus attorney's fees. Meanwhile, your medical plan has paid a total of $6,000 for treatment of your injury, so you must reimburse your medical plan for $6,000 out of your settlement.

Before you accept any settlement, tell your Claims Administrator the terms, and tell the third-party that we have an interest in the settlement.. If you have medical bills after you receive a settlement, we will not pay those bills until your settlement is exhausted.

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Protection of coverage

If you experience a delay in payment or settlement by the third-party, or a delay in determining responsibility, your benefit plan will pay your health claims for covered benefits if you have followed the usual procedures.

The third-party could deny your claims months after you have already received health care. The benefit plans would not be able to pay those claims if you did not follow the usual procedures for those claims.

Notification

If you are using your plan benefits for an illness or injury you think may be the responsibility of another party, notify the plan's Claims Administrator in writing as soon as possible. When a Claims Administrator receives a claim that they think might be the responsibility of a third-party, they will send you an Accident/Injury Questionnaire to be filled out and returned.

The contractual rules for third-party liability are complicated and specific. If you have questions or concerns about any claims, please call the Claims Administrator's Customer Service Department.

Confidentiality

Your Claims Administrator's employees observe strict confidentiality when handling or processing your claims and records. Violation of member confidentiality is grounds for dismissal.

However, by accepting the plan membership, you authorize the Claims Administrator to release information in certain circumstances:

  • The Claims Administrator has the right to examine your medical records for any condition for which you claim benefits as a member.
  • The Claims Administrator has the right to release member information to physicians, hospitals, and other providers unless state or federal law prevents disclosure without your consent.
  • The Claims Administrator has the right to use your medical records in order to conduct professional review programs for health services.

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