Most employers are familiar with the federal COBRA law. However, many may not be aware that most states have also passed their own version of COBRA, popularly called mini-COBRA laws. While many of these laws are similar to federal COBRA, there can be important differences.
What employers have to comply with Pennsylvania mini-COBRA?
Pennsylvania mini-COBRA applies to employer group health plans that are not subject to federal COBRA.
What are the qualifying events?
Pennsylvania mini-COBRA qualifying events are similar to federal COBRA. A qualifying event includes:
- Termination of employment (except for gross misconduct)
- Reduction in hours causing a loss of eligibility
- Loss of dependent status (children only)
- Death of the employee
- Bankruptcy of the employer
Continuation coverage generally lasts for nine months.
Who is a qualified beneficiary?
A qualified beneficiary is an employee covered by the plan for at least three months before a qualifying event and their eligible dependents.
Are there notice requirements?
Employers are required to notify plan administrators, insurers, and employees of continuation rights within 30 days of a qualifying event. Qualified beneficiaries have 30 days from the date they received notice to elect continuation coverage.