Update on 2 New Pennsylvania Laws
To address the need to extend health care options for those newly unemployed, and help provide coverage for the growing number of uninsured Pennsylvanians, on June 10, 2009, Gov. Edward G. Rendell signed two new laws: one is known as "mini-COBRA"; the other concerns health insurance coverage for adult children. To keep you and your customers informed, we want to provide a brief summary of each law.
 
Mini-COBRA
This state law allows employees (and their eligible dependents) who are employed by a small business (2 to 19 employees) to be eligible for Pennsylvania mini-COBRA benefits if they are terminated due to a qualifying event after July 10, 2009. Pennsylvania mini-COBRA benefits will extend the employee's (and eligible dependents') health care coverage under their employer's health insurance plan. As you know, employers with 2 to 19 employees are not required to offer federal COBRA benefits. There are several key differences between the Pennsylvania mini-COBRA benefit and federal COBRA benefits; these are the most noteworthy:
  • Length of coverage - Pennsylvania mini-COBRA allows employees with a qualifying event to extend coverage for up to nine months. Under federal COBRA laws, coverage is typically extended for 18 months and can be longer for dependents or disabled employees depending on the qualifying event.
  • Notification requirements - Federal COBRA laws put the notification responsibilities on the employer. For Pennsylvania mini-COBRA, insurers are required to notify existing policyholders of this law by July 25, 2009. A description of mini-COBRA rights will also be included in group policies that are either renewed or newly-issued after the law becomes effective. When a qualifying event occurs, the employer is responsible for notifying the covered employee and insurer within 30 days. If a covered employee or eligible dependent elects to continue coverage under Pennsylvania mini-COBRA, he or she must notify the insurer within 30 days of notice from the employer.
Qualifying small group (2-19) employees who are involuntarily terminated, except for gross misconduct, between July 10, 2009, and December 31, 2009, may also take advantage of the 65 percent premium subsidy provided by the federal American Recovery and Reinvestment Act enacted earlier this year. The Commonwealth of Pennsylvania website provides useful information on the new law as well as an FAQ.

 
Health insurance coverage for adult children The group employer has the option to extend the age for health insurance coverage for adult dependents through age 29 and end coverage when a dependent turns 30. This allows an adult dependent up to age 30 to remain covered by his or her parents' health insurance if, in addition to the group employer choosing this option, the adult dependent:
  • is not married;
  • has no dependents;
  • resides in Pennsylvania (unless he or she is enrolled as a full-time student at an institution of higher learning in another state);
  • is not provided private insurance coverage;
  • is not enrolled in or eligible for government benefits.
As you know, insurers had been required to cover dependents on their parents' insurance only until they were 19.
 
The Pennsylvania Insurance Department has prepared a document with more information on the law.
 
We are in the process of evaluating these new laws. Additional information, including any communications to groups and members, will follow at a later date.
 
 
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