The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.
New York State Mini Cobra (New York Health Insurance Continuation)
An amendment to New York state insurance law significantly changes how COBRA continuation coverage applies to insured group health plans covering businesses and individuals in New York by extending the state’s 18-month “mini-COBRA” period for terminations of employment.
New York’s mini-COBRA statute now extends continued coverage from 18 to 36 months following the loss of employer-sponsored coverage due to job loss. The mini-COBRA statute generally only covers insured plans if the employer employs fewer than 20 employees. However, under this new extension, if federal COBRA coverage is exhausted under an insured group health plan maintained by a larger employer, qualified beneficiaries will also have the opportunity to extend coverage under New York law for an additional 18-month period, for up to a total of 36 months following the date federal COBRA coverage began. In effect, a 36-month continuation period will apply to all New York group insurance policies, regardless of employer size. This amendment was effective July 1, 2009, and applies to all insurance contracts issued, renewed, modified, altered or amended on or after that date.
