Hawaii Medical Service Association has posted a special webpage outlining its policy on the premium reductions under the Consolidated Omnibus Budget Reconciliation Act for “assistance eligible individuals” and employer group health plans with HMSA.

According to HMSA’s outline of employer responsibilities, the employer (or plan administrator) will have to send out the COBRA notifications, and determine who will be eligible for the 35 percent COBRA subsidy. The employer will then have to notify HMSA of the subsidy-eligible individuals, bill the eligible individual, be responsible for collecting the qualified beneficiary’s portion and sending the payment along with the employer’s 65 percent share to HMSA. HMSA is providing a sample billing letter for employers to send to eligible individuals.

HMSA says it will continue to directly bill the qualified beneficiary for COBRA coverage which is ineligible for the subsidy (i.e. divorce, voluntary separation, termination of dependent child coverage).