Small Businesses are affected by the new COBRA Subsidy

The clock has struck midnight.  The subsidy is available starting March 1st, yet many business owners do not understand that this new COBRA subsidy legislation may affect them regardless of their size.  For business owners with more than 20 FTE employees (Part time Count as 1/2) you are subject to COBRA.   Employers with 2-19 lives, you may be subject to “mini-COBRA” state laws sometimes known as state continuation of coverage.  Please see the listing below.   If so you need to immediately recalculate any payments being made by employees and reconcile any possible credits that should be offered.

Now more than ever it is important that you are prepared to notify benefit eligible employees currently in your organization and everyone that has any termination going back to September.  For ‘mini-COBRA” the window might vary based on the length of time required by the state.  Why do I say everyone with any instead of the “involuntary termination” rule that is in the act?  Every employer has a one shot window to notify all employees going back to Sept. 08′.  Would it not be better to notify everyone that they “could” be eligible and then deal with the gross misconduct terminations as they may come back to you with requests.

State Listings:

These laws are subject to change and the details on this page may not be current.

Arkansas: Act 997 of 1997 requires employers with 2-19 employees to offer COBRA for 4 months.

California: Cal-COBRA applies to employers with 2-19 employees and provides these employees 36 months of coverage.

Colorado: 2 employees in Colorado as of Jan 1, 1998, can get COBRA. if you are declined for coverage because of pre-existing conditions, you will be eligible for the Colorado Uninsurable Health Insurance Plan, called CUHIP. This is a state-run program for people in this situation.

Connecticut: Public Act 97-268 gives disabled individuals continuation benefits for 29 months, instead of the 36 months. Also, employees of any employer group policy to be offered COBRA for 24 months.

Florida: The Florida Health Insurance Coverage Continuation Act requires insurance companies to offer an 18-month continuation for groups of 2-19, but the employee has only 30 days to request this extension.

Georgia: Requires employers with 2-19 employees to offer COBRA for 3 months.

Illinois: The Illinois Continuation Law provides employees of any employer group policy to be offered COBRA for 18 months.

Iowa: Chapter 509B and Regulation 29 provide for continuation and conversion of group insurance. Employer plans of from 2-19 participants can qualify for 9 months

Kansas: Kansas Continuation law requires employers with 2-19 employees to offer COBRA for 6 months.

Kentucky: Chapter 304 of the Kansas Insurance Code provides employees of any employer group policy to be offered COBRA for 18 months.

Louisiana: Regulation 68 requires employers with 2-19 employees to offer COBRA for 12 months.

Maine: Requires employers with 2-19 employees to offer COBRA for 12 months.

Maryland: Maryland Continuation law provides employees of any employer group policy to be offered COBRA for 18 months.

Massachusetts: Massachusetts Mini-COBRA law requires employers with 2-19 employees to offer COBRA for 18 months.

Minnesota: Code 62 requires employers with 2-19 employees to offer COBRA for 18 months.

Mississippi: requires employers with 2-19 employees to offer COBRA for 12 months.

Missouri: Statute Chapter 376, Section 376.428 requires employers with less than 20 employees to offer COBRA for 9 months.

Nebraska: Offers a Comprehensive Health Insurance Pool for the uninsurable.

Nevada: Chapter 689B requires employers with 2-19 employees to offer COBRA for 18 months.

New Hampshire: State Bulletin 711, RE: Chapter 29 laws of 1994 requires employers with 2-19 employees to offer COBRA for 18 months.

New Jersey: Plans with 2-19 employees can qualify for 12 months of COBRA continuation coverage.

New Mexico: title 13, Chapter 10, Part 11.31 states that plans with 2-19 employees can qualify for 6 months of continuation coverage.

New York: Guaranteed Issue state law that requires insurers to cover anyone who applies. For more information visit this source: Source: http://www.ins.state.ny.us/faqcs1.htm#cobra

North Carolina: North Carolina State Continuation laws state that plans with 2-19 employees can qualify for 18 months.

North Dakota: If your employer has less than 20 employees, you will fall under North Dakota state law. This law identifies the specific rules and regulations to continue your group health coverage. Like COBRA, coverage is only temporary — 39 weeks.

Ohio: Section 3923.38 of the Ohio Revised Code states plans with 10-19 employees can qualify for continuation coverage.

Oklahoma: Oklahoma Statute title 36, Chapter 1, Article 45 states that plans with 2-19 employees can qualify for 1 month of guaranteed continuation.

Oregon: State continuation of coverage. You may be eligible to continue your group policy if your benefits are affected by termination from employment, dissolution of marriage or legal
separation, or you are a surviving spouse and you do not qualify for COBRA coverage. Your former employer must have 19 or fewer employees. A continuation-of-coverage policy will provide protection for a maximum of six months or until you are eligible for other coverage (including Medicare) whichever is shorter. The coverage may or may not include optional benefits such as vision, dental, or prescription coverage. Source: Oregon Consumer Guide to Health Insurance

Rhode Island: Chapter 27-20.4 Insurance Continuation Act states plans with 2-19 employees can qualify for 18 months of continued coverage.

South Carolina: Employees of employers with 2-19 employees can qualify for 6 months of continuation coverage.

South Dakota: Employees of employers with 2-19 employees can qualify for 18 months of continuation coverage.

Tennessee: Employees of employers with 2-19 employees can qualify for 3 months of continuation coverage.

Texas: Employees of employers with 2-19 employees can qualify for 6 months of continuation coverage. http://www.tdi.state.tx.us/consumer/cbo05.htm

Utah: Utah Code – title 31A, Chapter 30 states employees of employers with 2-19 employees can qualify for 6 months of continuation coverage.

Vermont: Employees of employers with 2-19 employees can qualify for 6 months of continuation coverage. http://www.bishca.state.vt.us/Regs&Bulls/insbulls/BUL78.htm

West Virginia: Employees of employers with 2-19 employees can qualify for 18 months of continuation coverage.

Wisconsin: Employees of employers with 2-19 employees can qualify for 18 months of continuation coverage.

Wyoming: Employees of employers with 2-19 employees can qualify for 18 months of continuation coverage.

I am not a practicing lawyer, so do not take this blog as legal advice.  However if you need assistance please call or email and I can help guide you through the adminstration process and provide consultative services to find the right vendor and button down your current processes to maintain compliance.