Blue Cross Blue Shield of Texas recently announced they will no longer administer COBRA and State Continuation services for their group clients. For HR managers who relied on this integrated service, this is a significant change that requires action.
This guide will help you determine in just a few minutes if your company is affected and what your next steps should be.
Key Takeaways
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The News: BCBSTX is discontinuing its role as a middleman for COBRA and State Continuation administration.
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The Guide: We provide simple, step-by-step instructions to check your account status in the BCBSTX employer portal.
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The Warning: Administering COBRA and State Continuation on your own is complex and risky. We strongly advise against it.
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The Solution: If you are affected, you will need to partner with a dedicated Third-Party Administrator (TPA). We can help.
How to Check if BCBSTX Handles Your Continuation Services
Follow these three simple steps to see how your account is set up.
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Log in to the employer portal at BCBSTX.com.
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From the home page, navigate to your Account Summary menu on the left and click on Account Details.
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Across the top of the page, click on the Group Sections tab.
This page shows all the products and programs associated with your company’s account.
Understanding Your “Section” Codes
In the “Section” column, look for the following four-digit codes. They will tell you exactly how your continuation services are set up.
If you see these codes, BCBS is your administrator (Action Required):
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99xx: BCBS Administered COBRA (18 months)
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98xx: BCBS Administered 9-Month State Continuation
If you see these codes, YOU are listed as the administrator (Action Required: Verify This is Correct):
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90xx: Self-Administered COBRA (18 months)
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97xx: Self-Administered 9-Month State Continuation
What if you don’t see any of these codes? That’s okay. It likely means your group is not currently set up for COBRA or State Continuation, as these sections are often only added after a terminated employee needs to elect coverage.
Next Steps: Don’t Go It Alone
If your account shows that BCBSTX was your administrator, you will need to find a new solution.
While it may be tempting to manage this in-house to save money, we strongly advise against it. COBRA and State Continuation are heavily regulated and cumbersome to administer. A single mistake can lead to significant compliance risks.
The good news is there are many excellent, affordable TPAs that can manage this for you.
If this is still clear as mud, we’re here to help. H|BC partners with great companies that specialize in these services. We will gladly help you navigate these regulated waters and find a solution that fits your needs. Please let us know what we can do to help!
