Employer-Administered State Continuation

If you elect to administer your own State Continuation Coverage plan, you must follow these steps:

  1. Notify Blue Cross and Blue Shield of Texas (BCBSTX) when an employee is terminated.       
  2. Notify BCBSTX via the Texas Nine (9) Months Continuation of Insurance Application form when a member selects coverage.
  1. Bill the applicant for the continuation coverage he or she selects. You will receive a monthly statement once membership is established. State continuants will appear in a separate billing section on your statement.
  • You may bill for up to 102% of the appropriate group premium. The additional 2% is an optional employer administration charge. Pay 100% of the employee premium to BCBSTX and retain the 2% administration charge, if applicable.
  1. Submit payment to BCBSTX. You must collect the initial premium from all continuants within 45 days of the date coverage was first elected. Then submit your total group payment to BCBSTX by business check. BCBSTX must receive all subsequent payments within 30 days of the due date.
  2. Cancel continuants from State Continuation Coverage when the nine (9)-month continuation coverage period ends or any of these events occur:
  • You discontinue offering your group plan to all employees
  • The continuant fails to submit a premium payment within 30 days* of the due date
  • The continuant obtains other group coverage
  • The continuant becomes eligible for Medicare coverage
  • The continuant requests to drop coverage

You may submit your cancellation requests online through Blue Access for EmployersSM or by notifying BCBSTX in writing.

*The 30-day payment grace period does not apply to the initial premium payment. Eligible continuants have 60 days from the date you notify them of their continuation rights to apply for coverage. They have an additional 45 days from the date they apply for coverage to submit the first premium payment to you. You must then submit payment to BCBSTX by business check. To avoid delays in membership setup, it is important that you act promptly.