"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