COBRA Benefits Extended to Small Businesses

Employees of small businesses who leave their jobs will be eligible to extend their health insurance as of July 10, 2009. 

Act 2 of 2009, or the mini-COBRA law, was signed by Gov. Ed Rendell on June 10. 

Former employees, retirees, spouses, former spouses, and dependent children can continue group health coverage at their own expense for up to 18 months under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA). 

The law only applies to employers with 20 or more employees, but Act 2 extends COBRA to those with 2 to 19 employees. 

Those extending their health care coverage under mini-COBRA also can receive the same 65 percent federal premium subsidy offered to those eligible for traditional COBRA. 

An identical bill was part of HealthNET PA, a health care reform package introduced by Senate Republicans.

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Last Updated: 6/11/2009
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