On July 10, 2009, Pennsylvania’s Mini-COBRA law went into effect for employers with 2-19 employees. This law gives employees who receive health insurance from their employers the right to purchase health insurance continuation coverage after employment ends. Eligible employees and dependents can purchase health insurance for up to 9 months after their employment ends.
CGA’s previous Employment Alert discussed the qualifying events and elements of Mini-COBRA. More recently, the PA Department of Insurance issued a Model Notice for insurance companies to send to their policyholders (employers) informing them of the requirements of Mini-COBRA. Insurers must provide policyholders with notice by August 24,2009.
In addition, the PA Insurance Department and Department of Labor & Industry drafted a Model Notice that employers may use after an employee experiences a “qualifying event”. Employers are required to provide employees and their eligible dependents with notice of their rights and obligations under Mini-COBRA within 30 days of a qualifying event. Employers may opt to use this Model Notice in order to comply with the notice requirements under Mini-COBRA.
Mini-COBRA does not specify how notices must be provided to employees and eligible dependents, but employers should maintain proof of mailing to each eligible employee and any eligible dependents in order to prove compliance with the notice provisions under Mini-COBRA.
Each individual should receive his or her own notice.
The current Model Notice also includes information for employees and their eligible dependents concerning the premium assistance under ARRA. In order for employees and their dependents to be eligible for premium assistance, the employee must be involuntarily terminated on or after July 10, 2009 and before January 1, 2010. The Notice includes an application for premium assistance under the ARRA, and employees may complete the application utilized under Federal COBRA. The same income limitations apply to Mini-COBRA under the ARRA.
Employers should remember that Mini-COBRA does not expire when the premium subsidy under the ARRA expires. Small employers in Pennsylvania will be required to continue to offer health insurance benefits within 30 days of a qualifying event to each eligible employee and his or her dependents.
For more information concerning Mini-COBRA or employment matters in general, please contact CGA’s Employment Law Department.
Anne E. Zerbe
717.848.4900 ext. 104 
717.843.9039
azerbe@cgalaw.com
