New legislation, Public Act 10-13, immediately affects substantially all employer group health insurance policies (both small and large group policies) subject to Connecticut state insurance law regulation. Connecticut Mini COBRA applies to insurance plans whose employers have less than 20 employees. Group health and accident insurance plans must grant insurance coverage for up to 12 additional months for members, spouses, and dependents if their normal group coverage ends due to dismissal from employment, membership, divorce, or separation. Shop alternative health insurance plans
Connecticut COBRA Duration
The legislation extends to a maximum of 30 months (from 18 months) Connecticut’s COBRA continuation coverage requirements for employees and their dependents who have a COBRA qualifying event. Examples of such an event include the employee’s layoff, reduction of hours, leave of absence, or termination of employment, other than as a result of death of the employee or as a result of such employee's "gross misconduct."
Connecticut COBRA may be terminated early if the former employee becomes eligible for coverage under any other group health insurance. Thus, affected employers subject to federal COBRA will need to consider how to separately administer both provisions.
The legislation is effective and applies only to COBRA beneficiaries covered under a Connecticut-regulated health insurance policy on May 5, 2010, or who become eligible for COBRA under a Connecticut-regulated insurance policy after that date. Insurers are responsible “in conjunction with group policyholders” for notifying affected individuals of the change within 60 days after the date of enactment. There are no other mandated notice requirements.
Administering Connecticut COBRA
Employers subject to federal COBRA should continue applying the federal COBRA requirements until the former employee exhausts the maximum 18 months of federal COBRA coverage. The former employee may then be eligible for up to an additional 12 months of Connecticut COBRA coverage (for a total of 30 months) so long as the former employee is not eligible at any time for coverage under any other group health insurance, regardless of the type or cost of the other coverage. Unlike federal COBRA, Connecticut COBRA continuation requirements may terminate early if the qualified beneficiary is merely eligible for other group health insurance.
Connecticut Bundled Health Plans
According to the Connecticut State Insurance Department, the Connecticut COBRA requirements do not apply to separate Connecticut insurance policies providing for stand-alone vision, dental, or prescription drug coverage. The requirements would apply to these coverages if they are provided under a packaged Connecticut-regulated group health insurance policy.
Self-Insured Health Plans
Employers with traditional self-insured group health plans are not subject to Connecticut state insurance law requirements, and thus are not required to comply with Connecticut’s mini-COBRA requirements.
Multi-State Employer Group Plans
Other employers with multi-state locations that include Connecticut should check their health insurance policies and with their carriers to determine if group health insurance coverage offered to Connecticut employees must conform to Connecticut insurance law requirements. Generally, Connecticut law (CGS §38a-531) provides that insured group health plan coverages offered to Connecticut employees must conform with Connecticut state insurance laws if at least 51 percent of the employer’s covered employees are employed in Connecticut on any coverage or renewal date.
Connecticut Employers & COBRA
Employers with affected Connecticut employees should update their COBRA procedures and discuss these changes with their COBRA third-party administrators. Employers may furnish the Connecticut-required notice rather than letting the carrier fulfill the requirement. Affected employers should consider whether to update or modify their COBRA communication materials with information concerning Connecticut COBRA generally.
Penalties for not administering COBRA
Employers who do not comply with COBRA's notice requirements can be taxed $100 each day per qualified beneficiary who is affected by the employer's failure. Health plan administrators who do not comply with COBRA's notice requirements can be fined $110 each day per qualified beneficiary who is not notified. There is a maximum time limit of filing a lawsuit to recover you damages from COBRA. The group health plan can also be sued for COBRA violations, and legal fees have been awarded in the past, for bringing a COBRAS lawsuit.
About COBRA
Employers who offer group health care plans to a minimum of 20 employees must comply with ERISA (the Employee Retirement Income Security Act of 1974). The Federal version or the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), requires that most group health plans provide 18-36 months of continuing health insurance.
No Mini Cobra Coverage
47 of the 50 U.S. states have COBRA laws that cover smaller employers, generally called state mini-cobra laws. States that have not passed a mini-cobra law include Alabama, Alaska, and Delaware.
Among States that have mini-cobra laws, the lengths of coverage vary from 30 days to 36 months. Please refer to our Mini State COBRA Law Directory.
Written by Craig J. Casey
Craig Casey is an Writer, Coach, Blogger, Husband, and Former Health Insurance Agent helping people on the web since 1999 with their health insurance problems.
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