The September 11th attack
Laid-off workers may get subsidized HMSA coverage
Advertiser Staff
As the number of Hawai'i residents filing for new unemployment claims in the wake of the Sept. 11 terrorist attacks continues to grow, the state's biggest medical insurer last week launched a $50 million program to help thousands of struggling employers and residents who have lost their jobs.
The terrorist attacks staggered Hawai'i's already slowing economy. Since the attacks, nearly 11,000 people have filed for jobless benefits as employers cut hours and lay off workers to try to cope with the downturn in tourism.
For members laid off because of the economic impact of the attacks, Hawaii Medical Service Association said it will subsidize health-care coverage payments for those who do not have access to alternative health coverage. For companies with 20 or more employees, laid-off workers can enroll in
COBRA (the Consolidated Omnibus Budget Reconciliation Act of 1985) through their employer.
For employees from companies with fewer than 20 workers, HMSA has created a plan specifically for this situation.
Some answers to frequently asked questions about the program:
Q. How can you find out whether you're eligible for extended health coverage?
A. Talk to your employer. Your employer will have the information you need if you are laid off. Ask about the HMSA Member Protection Program.
Q. What can you expect if you work for a company with 20 or more employees?
A. Companies with 20 or more employees are required by federal law to offer you COBRA coverage. For HMSA members there is a special subsidy to help make this coverage affordable. Employers will provide the details.
Q. What can you expect if you work for a company with fewer than 20 employees?
A. COBRA coverage is not available to companies with fewer than 20 employees. However, for HMSA members there is a special extension coverage plan. Employers can provide details.
Q. Is this special extension of coverage plan expensive, and how long is it good for?
A. The plan will cover HMSA members for up to 18 months, and HMSA will provide a special subsidy to help make the coverage affordable. Adult coverage will be at 50 percent off for the first three months, and dependent children will be covered free for the first three months. Your employer will have more details.
Q. If you enroll in COBRA through an employer, how much is the HMSA subsidy?
A. The special subsidy is the same as for the extension of coverage plan. That means HMSA members will receive adult coverage at 50 percent off for the first three months, and dependent children will be covered free for the first three months.
Q. Does a layoff need to be associated with the Sept. 11 attacks?
A. Your employer needs to certify that your layoff was the result of the economic downturn in Hawai'i related to the attacks. Your employer will certify this using a form provided by HMSA. Members laid off Sept. 11 through Dec. 21, 2001, are eligible for the HMSA Member Protection Program.
Q. If you are eligible for other employer, state or federal coverage, can you still take advantage of the financial assistance being offered by HMSA?
A. No. The subsidy is for members only when there is no other alternative coverage available.
Q. Where is there more information?
A. You should speak with your employer. HMSA also has a hotline at 948-6309 on O'ahu. From the Neighbor Islands, members can call toll-free 800-643-308.
