Massachusetts Mini-COBRA
08/12/2009
If you are a Massachusetts based employer with 2-19 employees and offer health insurance to your employees please continue to read our updated communication with regard to your obligation under the Massachusetts Mini-COBRA law or state continuation of coverage. As you know Mini-COBRA is a Massachusetts law designed to replicate the Federal COBRA regulations which provides for the continuation of health insurance. As part of the Obama Administration’s American Recovery and Reinvestment Act or ARRA which became law in February 2009, Federal stimulus funds were made available to offset the monthly cost of health insurance premiums for employees and eligible dependents that lost health insurance due to the involuntary termination of their employment. Part of the COBRA subsidy provision allowed for a special election or re-enrollment opportunity for individuals who were offered COBRA continuation at the initial point of termination between September 1, 2008 and February 17, 2009 but declined or enrolled and subsequently cancelled for non-payment. For employers subject to state continuation of coverage or Mini-COBRA laws, this special open enrollment provision did not apply. On July 2, 2009 however, the Massachusetts Legislature passed a law which mirrors the special open enrollment election period contained in ARRA. As a result, individuals who were involuntarily terminated from employment from September 1, 2008 through February 17, 2009 must now be notified of their opportunity to re-enroll in your company’s health insurance plan. Additionally, these former employees and their dependents are also eligible to receive the 65% Federal subsidy towards payment of their monthly health insurance premiums for a period not to exceed 9 months. Please note this does not extend the original 18 months of coverage offered at plan termination. You or your terminated employees should have already, or will soon be contacted by your health insurance carrier with instructions on notifying your former employees. If you have any questions please feel free to contact your Yozell Associates Account Manager.
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