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Oregonians who lose their jobs have two options to continue coverage under their group health plan. If their former employer has twenty or more workers, they are eligible under the Consolidated Omnibus Budget Reconciliation Act (COBRA). If their former employer has fewer than twenty workers, they are eligible under Oregon’s state continuation law. The federal economic stimulus package extends a 65-percent subsidy for up to nine months of coverage. Recognizing the need for changes to state law to allow Oregonians to obtain the full advantage of the federal subsidy, the Oregon Legislative Assembly enacted House Bill 2433, which extends the period of eligibility for state continuation coverage from six to nine months and allows the Director of the Department of Consumer and Business Services to adopt rules as necessary to allow Oregonians to take full advantage of the benefits provided by the federal law.  These rules enact the following provisions to implement House Bill 2433:
-     Extend the period of continuation coverage for assistance eligible individuals (AEIs) to provide coverage periods of no less than 9 months
-     Allow an independent election of coverage for all qualified beneficiaries 
-     Create a second election opportunity for state continuation coverage for AEIs who experienced a qualifying event on or after 9/1/08 and before the effective date of HB 2433 and either did not elect or whose continuation coverage ended for any reason (e.g., lapse due to nonpayment, expiration of 6-month coverage period)
-     Establish notice requirements for insurers
-     Specify that enrollees who take advantage of the second election opportunity are provided a period of continuous coverage for purposes of calculating creditable coverage