Pennsylvania Act 2 of 2009, which was recently enacted, requires small groups to provide continuation coverage to a member of a group who loses medical coverage due to certain qualifying events. Because legislation applies to small groups which are exempt from the federal continuation coverage requirements known as COBRA, the state requirement is referred to as ‘mini-COBRA’.
The new 'mini-COBRA' law was effective July 10, 2009, and applies to groups with 2 – 19 employees who offer medical coverage to their employees and/or spouses and dependent children. Mini-COBRA does not apply to groups subject to federal COBRA (those with 20 or more employees) or to government plans.
Special note regarding federal premium assistance:
The American Recovery and Reinvestment Act of 2009 (ARRA) reduces the mini-COBRA premium in some cases. If an employee or dependent becomes eligible for mini-COBRA as a result of an “involuntary termination” (defined in ARRA) they may be eligible for premium assistance for the nine months that mini-COBRA is effective.
Download these documents to learn more about mini-COBRA and the federal assistance premium.
PA Employer Notice: Mini-COBRA Effective July 10 2009
PA Employer Notice: Employee Model Continuation Notice
COBRA Subsidy Fact Sheet Effective December 19 2009