For groups of 1-50 employees
State mini-COBRA law:
Pennsylvania Act 2 of 2009 (mini-COBRA) became effective on July 10, 2009. This act requires small groups with 2 – 19 employees to offer health care continuation coverage to qualified employees and dependents who lose their insurance as a result of a qualifying event.
Mini-COBRA applies to medical coverage and does not include stand alone dental and vision coverage.
Who is eligible for mini-COBRA?
An employee and/or dependent who:
- Was continuously covered under the group policy for three months prior to termination
- Lost coverage due to a “qualifying event” on or after July 10, 2009
- Is not covered or eligible for Medicare
- Is not eligible for employee based coverage as an eligible dependent
- Is not covered or eligible for other group coverage (excluding Medical Assistance, Children’s Health Insurance Program (CHIP)
What is a qualifying event?
To be covered for mini-COBRA, the eligible employee or dependent must have suffered one of the following qualifying events which resulted in loss of health care coverage:
- Termination of employment for reasons other than gross misconduct
- Reduction of hours that result in loss of coverage
- Covered employee becomes eligible for Medicare (dependent requires group coverage)
- Divorce or legal action
- Child ages out of coverage
- Termination due to employer’s bankruptcy proceedings
- Death of the covered employee
Notice
Under the Pennsylvania mini-COBRA statute and the amendment to this law, employers are responsible for providing their employees with notice of their rights under mini-COBRA.
To learn more about mini-COBRA, visit the Pennsylvania Insurance Department.
