If you employ 2 – 19 employees in Pennsylvania, you want to be aware of the newly enacted mini COBRA law which entitles employees and dependents of employees to receive continuation of health care benefits in case of a qualifying event. The premium will be paid by the employee or dependent, and coverage may be extended for nine months.
A qualifying event includes:
• death of the covered employee,
• termination of employment (either voluntary or involuntary, but not for the employee’s gross misconduct),
• reduction in hours,
• divorce or legal separation,
• eligibility for Medicare,
• dependent child ceasing to be dependent,
• bankruptcy of the employer.
In addition, the Federal Stimulus package that provides for premium reductions due to lay-offs will apply.
The following link contains a model notice and additional information.
Twitter