CA SB838

Requires health care service plans and health insurers offering group coverage to employers with 2-19 employees to notify qualified beneficiaries about federal premium assistance (ARRA) for continuation coverage when employment is involuntarily terminated on or after January 1, 2010.

Allows qualified beneficiaries eligible for premium assistance to elect continuation coverage within 60 days of receiving notice, and permits those who previously rejected coverage to withdraw that rejection and elect coverage with the federal subsidy.

Requires plans and insurers to provide information about federal premium assistance and special election periods on their Internet websites, and mandates employers notify plans within 14 days of employee terminations occurring on or after March 2, 2010.

Establishes procedures for verifying involuntary termination of employment and requires insurers/plans to provide continuation coverage with federal assistance or issue a denial letter with appeal rights if verification cannot be completed within 14 business days.

Takes effect immediately as an urgency statute to make federal funds available for subsidized health care coverage premiums for individuals who lost group health coverage due to qualifying events.