Pennsylvania Mini-Cobra: What Small Employers Need to Know

July 8, 2009Articles TechBurger

© 2009 TechBurger blog – Pittsburgh Technology Council.

Techburgher was just sent a nice whitepaper detailing some updates to COBRA as written by Seth I. Corbin of Fox Rothschild LLP right here in Pittsburgh.

On June 10, 2009, Governor Rendell signed “Pennsylvania mini-COBRA” into law. This new legislation becomes effective on July 10, 2009, and applies to Pennsylvania employers with at least two but less than 20 employees on a typical business day during the preceding calendar year. These employers currently are exempt from health care continuation obligations under COBRA, the federal law enacted in 1986 and applicable to employers with 20 or more employees.

This new state law now requires small employers to offer employees and their eligible dependents the opportunity to continue group health coverage for up to nine months following a qualifying event that results in the loss of group health coverage. Among the most common qualifying events are death of a covered employee, reduction in an employee’s hours, termination of employment other than by reason of gross misconduct, and divorce or legal separation.

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