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PageWednesday, January 24, 2007
Employees soon will be routinely enrolled in a new medical insurance plan if their own health plan goes out of business or can't purpose because of a disaster, under new rules that take effect Feb. 16.
At present, employees must switch to a new plan if their plan is discontinued by the Office of Personnel Management. If they don't, they mislay their coverage. OPM is to revise the rules so employees are transferred to the nationwide Blue Cross and Blue Shield Association standard plan if their health plan is discontinued and they don't control to another plan on their own.
OPM also is increasing the circumstances under which it can discontinue a plan to include situations in which a plan is not capable to provide services, either permanently or temporarily, because of a disaster. OPM presently can discontinue plans when they go bankrupt or there is a risk that the plan won't be able to meet its financial obligations. In a Jan. 17 Federal Register notice has announce the new rules, OPM said the changes are warranted in light of the damage caused by Hurricane Katrina and the information that it may be impossible to locate enrollees to inform them of the need to change health plans.
At present, employees must switch to a new plan if their plan is discontinued by the Office of Personnel Management. If they don't, they mislay their coverage. OPM is to revise the rules so employees are transferred to the nationwide Blue Cross and Blue Shield Association standard plan if their health plan is discontinued and they don't control to another plan on their own.
OPM also is increasing the circumstances under which it can discontinue a plan to include situations in which a plan is not capable to provide services, either permanently or temporarily, because of a disaster. OPM presently can discontinue plans when they go bankrupt or there is a risk that the plan won't be able to meet its financial obligations. In a Jan. 17 Federal Register notice has announce the new rules, OPM said the changes are warranted in light of the damage caused by Hurricane Katrina and the information that it may be impossible to locate enrollees to inform them of the need to change health plans.
posted by renaa
@ 2:57 PM
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