MAXIMUS Federal Services has been awarded a one-year contract by the Centers for Medicare and Medicaid Services to support expedited reviews and information services regarding COBRA premium assistance benefits provided under the American Recovery and Reinvestment Act of 2009.
Under the contract, valued at approximately $2 million, MAXIMUS will make recommendations – subject to CMS’ review and final action – as to whether certain individuals denied premium assistance are eligible for the benefit.
The company will also answer questions from the public about the premium assistance available under the Recovery Act and the expedited review process through a Web site and toll-free helpline.
“This contract represents the first award made by CMS under the Recovery Act’s COBRA provisions, and we are excited to be the provider of choice for CMS,” said MAXIMUS CEO Richard Montoni. “We are eager to support our clients as they navigate the challenges surrounding the utilization and implementation of Recovery Act funds.”
To help displaced workers maintain healthcare coverage for themselves and their families, the Recovery Act provides a 65 percent subsidy for health insurance premiums for workers who have elected COBRA after they have been involuntarily terminated from their jobs. This premium assistance benefit potentially can last for up to nine months. When a group health plan, employer or insurer denies an individual access to premium assistance under the Recovery Act, he or she may request expedited review of the denial.
Under the law, CMS handles appeals for government employees (federal and non-federal) under COBRA, as well as for those individuals covered by comparable “state mini-COBRA” programs that apply to group health plans offered by private employers with fewer than 20 employees.