Beginning January 1, 2010, a new medical plan called NetCare was made available for Utah consumers. NetCare was created by House Bill 188, which was passed during the 2009 Utah legislative session. NetCare has features commonly found in less expensive catastrophic plans. These include higher deductibles and higher out-of-pocket maximums and no deductible for preventive care office visits or prescriptions.
Alternative to COBRA/mini-COBRA
These plans are an alternative to COBRA/mini-COBRA. However, there are some differences between NetCare as a continuation plan and COBRA/mini-COBRA plans. If an employee elects to enroll in NetCare as an alternative to COBRA/mini-COBRA, they waive their rights to COBRA/mini-COBRA coverage (once the COBRA election period has expired).
Benefits and Rates
NetCare benefits do not change from employer to employer. There are two deductible options to choose from, each with a corresponding out-of-pocket maximum. Employees choose between the deductible options during enrollment on NetCare. Click one of the following plans to view coverage options.
Eligibility for NetCare Alternative Coverage
For employees who live in Utah, there are no separate eligibility requirements between COBRA or mini-COBRA and NetCare. If an employee of an employer with 20 or more employees becomes eligible for COBRA (termination of employment, reduction in hours, etc.), or an employee of an employer with fewer than 20 employees becomes eligible for state mini-COBRA, they are also eligible for NetCare. Employees residing outside of Utah are not eligible for NetCare coverage.
NetCare is not COBRA or mini-COBRA
COBRA and mini-COBRA coverage enable an employee to keep the same benefits as active employees. The maximum length of time an employee can be covered by NetCare is 12 months, with no additional options to extend based on COBRA qualifying events. If an employee elects to enroll in NetCare as an alternative to COBRA or mini-COBRA, they waive their rights to COBRA or mini-COBRA coverage (once the election period has expired). Please note: NetCare continuation coverage is not eligible for the subsidy granted by the American Recovery and Reinvestment Act of 2009.
Notification of Employees
You are responsible to notify employees of this option, not unlike your requirement to notify an employee of their right to COBRA or mini-COBRA. The Utah Insurance Department has drafted a model notification letter to help you with the notification process. You can choose to use this letter or draft your own notice. It may be more convenient for you and your employees to combine the notification processes for COBRA or mini-COBRA and NetCare.
Contact your broker or SelectHealth sales representative for more information.
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