Connecticut Health Care Continuation Coverage: Additional COBRA Subsidy Extension Announced

Effective May 5, 2010, employers that have group comprehensive health care plans must permit employees, their spouses, and employees’ dependents to elect to continue plan coverage for up to 30 months when certain qualifying events occur and must provide notice of such right by July 5, 2010, to certain employees, their spouses, and employees dependents.

The American Recovery and Reinvestment Act of 2009 (ARRA), as amended, provides for premium reductions for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35% of their COBRA premiums and the remaining 65% is reimbursed to the coverage provider through a tax credit. To qualify, individuals must experience a COBRA qualifying event that is the involuntary termination of a covered employee’s employment. The involuntary termination must generally occur during the period that began September 1, 2008 and ends on May 31, 2010. (An involuntary termination of employment that occurs on or after March 2, 2010 but by May 31, 2010 and follows a qualifying event that was a reduction of hours that occurred at any time from September 1, 2008 through May 31, 2010 is also a qualifying event for purposes of ARRA.) The premium reduction applies to periods of health coverage that began on or after February 17, 2009 and lasts for up to 15 months. See Continuing Extension Act of 2010.

This legislation applies to laid-off workers who are covered by Federal COBRA (businesses with 20 or more employees) as well as those covered under Connecticut’s state continuation law (businesses with less than 20 employees). The Connecticut Legislature recently enacted Public Act 10-1, which ensured that this new COBRA subsidy extension applied to small group business with less than 20 employees covered under Connecticut’s state continuation law.

Click below for information on this new extension.

Special Information for Connecticut Small Employer Groups  – Subject to state continuation (Mini-COBRA)

There are no updates for the following jurisdictions:

  • Massachusetts
  • New Hampshire
  • Rhode Island

Feel free to call us for information or to request assistance in looking into these state-by-state issues.

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