SCC News

RICHMOND - The State Corporation Commission’s (SCC) Bureau of Insurance reminds Virginians that health insurance options are available if they have recently been laid off or lost health insurance benefits through their employer.

“Loss of a job doesn’t have to mean loss of health insurance coverage,” said Virginia Insurance Commissioner Scott A. White. “In light of the rapidly evolving coronavirus (COVID-19) developments, it’s especially important to have health insurance now because most comprehensive health insurance plans, as well as Medicare and Medicaid, are providing increased benefits and coverages related to coronavirus testing and treatments that may be cost-prohibitive for individuals without health insurance.”

Health insurance coverage options are as follows:

• Virginians can apply for an individual plan through the health insurance marketplace under the federal Affordable Care Act (ACA). Although open enrollment runs from November 1 – December 15 each year, special enrollment periods (SEP) are available for people who may have recently lost their employer-sponsored health insurance coverage or certain other qualifying life events. You can apply for the SEP within 60 days before you know your coverage will end and within 60 days from the date you lost coverage. To learn more, visit HealthCare.gov. Keep in mind that your coverage may not begin immediately. Marketplace plans go into effect the first day of the month after your job ends.
• If you have already lost your job, you may be able to extend your health insurance coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA) for up to 18 months after you lose your job. Typically, employers with at least 20 full-time employees are required to offer COBRA coverage. If you opt in to coverage through COBRA, your health plan and health benefits remain the same, but you would be responsible for the entire cost of your coverage, plus an administrative fee. In most cases, you have 60 days to enroll upon receiving notice of eligibility for COBRA coverage. Once you opt in to COBRA coverage, you cannot switch to a plan through a health insurance marketplace until ACA open enrollment begins in November or until COBRA coverage ends in 18 months.
• Since losing your job is a qualifying event, you may also be able to get health insurance coverage through a spouse or other family member’s employer-sponsored insurance plan. Individuals younger than 26 may be able to join a parent’s employer-sponsored plan. Keep in mind that you have 30 days from the time your previous employer stops paying for your insurance to enroll in your family member’s plan.
• Other options include short-term, limited duration health insurance plans, discount health plans and health care sharing ministries. Commissioner White cautions that, while these plans may be less expensive than coverage through marketplace plans or COBRA, they may not offer the same consumer protections and coverage. They are not subject to ACA rules and often cover less than ACA-compliant marketplace plans. In addition, they may deny eligibility for coverage or exclude services because of pre-existing conditions and may apply dollar limits on the amount they will pay.
• Depending on your circumstances or income level, you may qualify for other assistance, such as Medicaid or Family Access to Medical Insurance Security. In Virginia, the Medicaid program is administered by the Department of Medical Assistance Services. When applying for health insurance coverage through the ACA marketplace (www.healthcare.gov), it will provide you with information on this program if you qualify. For more information concerning Virginia Medicaid programs, visit coverva.org or call 1-855-242-8282.

Before signing up for any health insurance plan, the Bureau of Insurance encourages Virginians to carefully consider what health care services you and your family need. According to Commissioner White, "not all health plans are the same, and some are not insurance." He encourages Virginians to protect themselves when shopping for health insurance by fully understanding the coverage, costs and protections before they sign up for any health plan. When comparing options, Commissioner White encourages Virginians to consider healthcare provider networks, premiums, deductibles, annual coverage limits, co-pays, coinsurance, out-of-pocket limits and any exclusions (for example, exclusions based on pre-existing conditions). If you have questions, the Bureau of Insurance can help.

For more information, contact the Virginia Bureau of Insurance toll-free at 1-877-310-6560 or online at www.scc.virginia.gov/boi or see www.scc.virginia.gov/boi/pubs/HthAlts19.pdf. You also can compare plans using the tool at www.scc.virginia.gov/boi/pubs/hlthplan_compare.pdf.

RICHMOND — The State Corporation Commission’s (SCC) Bureau of Insurance encourages Virginians in search of lost or misplaced life insurance policies and annuity contracts to use the free Life Insurance Policy Locator offered by the National Association of Insurance Commissioners (NAIC).

“Since the launch of the policy locator tool in November 2016, more than 1,000 Virginians have already recovered millions of dollars to which they were entitled,” said Virginia Insurance Commissioner Scott A. White. “Using secure technology, the service enables consumers to obtain money that was promised to them through life insurance and annuity contracts,” he said.

Thousands of consumers nationwide have benefited from this tool, which has matched more than 36,500 beneficiaries with lost or misplaced life insurance policies or annuities totaling more than $528 million. So far in Virginia, 1,141 consumers have recovered more than $15.7 million using this service.

Here’s how the Policy Locator works:

• Beneficiaries, executors or legal representatives of a deceased person may submit a search request form to the NAIC by going to the SCC Bureau of Insurance website at scc.virginia.gov/pages/Tips,-Guides-Publications or to the NAIC website at http://locator.naic.org. Requests are encrypted and secured to maintain confidentiality.
• Using the information submitted, the NAIC asks participating companies to search their records to determine whether they have a life insurance policy or annuity contract in the name of the deceased.
• Participating companies that have policy information are asked to respond to the requester if the requester is the designated beneficiary or is authorized to receive information. Neither insurance companies nor agents should assess a fee to anyone making a request through the service.

To facilitate your search for a policy, the Bureau of Insurance recommends trying to determine which insurance company issued the policy; which agent or broker sold the policy or whether the policy was purchased through an employer, union or association. You will need some personal details about the insured individual, including the individual’s full name (as well as the maiden name for a married individual), Social Security number and the state where the policy was purchased. To claim a life insurance benefit, you will also need a copy of the death certificate.

Under Virginia law, life insurance companies that know that a policyholder has died but cannot locate the beneficiaries of the policy are required to turn over the benefits of the policy to the state’s unclaimed property office if the benefits are not claimed after a certain number of years. If you know the state in which a life insurance policy was written, check with that state’s insurance department or the office that handles unclaimed property.

To avoid lost policies, the Bureau of Insurance encourages Virginians to keep beneficiary information up-to-date; alert beneficiaries of the policy and provide them with the name of the insurance agent and the company that issued the policy; place a current copy of the life insurance policy in a safe and accessible place with wills and estate documents, and ask the insurance company for an annual policy statement if one is not provided.

For questions or additional information about the policy locator and other life and health insurance matters, contact the Consumer Services Section of the Virginia Bureau of Insurance Life and Health Division toll-free at 1-877-310-6560 or visit www.scc.virginia.gov/boi.

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Contact: Katha Treanor (804) 371-9141