Pennsylvania's Mini COBRA Law
When negotiating the terms of any separation package, continuation of health care benefits can be of critical importance to a client. But what if your employer has fewer than 20 employees and thus is not subject to federal COBRA laws?
Pennsylvania employers with fewer than 20 employees are generally required to offer employees, the employee's spouse, and the employee's dependent children COBRA coverage under the Pennsylvania mini-COBRA law.
Employees, the employee's spouse, and the employee's dependent children are entitled to continuation of coverage for 9 months post-separation date if:
They lose group coverage due to termination of employment
They lose coverage due to a reduction in hours of employment
They lose eligibility for Medicare
They lose coverage due to divorce, or death of a spouse or guardian
Employees must also have been enrolled in the plan for at least 3 months in order to qualify for continuation of coverage. More information about Pennsylvania COBRA can be found at the Pennsylvania Insurance Department.
Keep in mind that employers with more than 20 employees are subject to federal COBRA legislation.