|
For Immediate
Release
6/10/09
"Mini-COBRA" Program Enacted in Pennsylvania
Former Small business employees will be eligible for
benefits
Legislation creating a "Mini-COBRA" health
insurance plan in Pennsylvania was signed into law by the Governor today,
according to Senator Don White (R-41), prime sponsor of the Senate version of
the measure.
The Mini-COBRA legislation will become
effective in 30 days after which those in companies with 2 to 19 employees will
be eligible for coverage. Individuals who left employment with an employer
covered under mini-COBRA prior to then will not be eligible for enrollment.
"I am pleased that Pennsylvania today joins
with states across the nation in providing an essential benefit to small
business employees," Senator White said. "The Mini-COBRA program will allow
displaced workers to maintain health care coverage and that is extremely
important now with the economy placing so many jobs at risk."
House Bill 1089, which was signed by the Governor as Act 2, is nearly
identical to Senate Bill 442, a measure introduced by Senator White and approved
by the Senate on April 1.
The Governor today also signed Act 4, a measure introduced by Senator Jake
Corman (R-34) as Senate Bill 189 to extend health insurance coverage, at the
expense of policyholders, to adult dependent children up to the age of 30.
House Bill 84 was enacted as Act 1. This measure permits health insurers
to withhold payment to providers in the event of an avoidable medical error. HB
84 is the companion bill to Senate Bill 443, a measure introduced by Senator
White and approved by the Senate in March.
House Bills 84 and 1089, and Senate Bill 189, all include provisions of
the HealthNET PA legislative package introduced by Senate Republicans. All of
the bills (House Bills 84 and 1089 as well as Senate Bills 189, 442 and 443)
were previously considered and approved by the Senate Banking and Insurance
Committee chaired by Senator White.
The federal Consolidated Omnibus Budget Reconciliation Act (COBRA)
provides former employees, retirees, spouses, former spouses, and dependent
children the right to continuation of health coverage at group rates for up to
18 months. However, COBRA benefits only apply to employers with 20 or more
employees. HB 1089 extends the COBRA guidelines in Pennsylvania to group plans
that employ 2 to 19 employees.
The American Recovery and Reinvestment Act
of 2009, also known as the federal stimulus act, provides a 65 percent federal
subsidy for COBRA premiums. The subsidy is good for up to nine months for those
covered by COBRA as well as those in a state continuation program such as
Pennsylvania’s Mini-COBRA program.
"This is not a silver bullet. It will not solve all of the problems with
Pennsylvania’s health care system," said Senator White, who serves as Chairman
of the Senate Banking and Insurance Committee. "However, it is a pragmatic step
in the right direction to improve the accessibility and affordability of health
care and most significantly -- it does not cost the Pennsylvania taxpayers one
dime. This measure is already in place in many other states and soon it will be
part of Pennsylvania’s health care network."
Contact:
Joe Pittman
(717) 787-8724
Additional Information:
Healthcare
 Print this page
E-mail
this page
Back |
