Mini-COBRA Expansion States

Hope everyone is having a great spring. Just wanted to update on the increase in mini-COBRA state continuation coverage programs going on currently.

Last month Viriginia added a state mini-COBRA program which went into effect in early April, 2009. I found out today that Pennsylvania is also finishing legislation to add a mini-COBRA program. Virginia's program runs 9 months to coincide with the subsidy. I expect Pennsylvania to go 9 or 18 months, again with the first 9 being subject to the subsidy.

For those who are not aware, a part of the ARRA legislation requires state mini-COBRA programs to provide the same 65% subsidy to qualified beneficiaries as the federal COBRA program.

In California, we have a program called "Cal-COBRA" which is the state mini-COBRA program with a special feature not found in other states.

Cal-COBRA applies to groups 2-19 employees which fall below the federal COBRA size. Additionally, Cal-COBRA contains an extension of coverage provision under AB 1401 which can apply to groups of any size, not just 2-19. This was signed into law by Gray Davis when he was still the governor. Under AB 1401, certain groups above 20 are eligible for an extra 18 months on Cal-COBRA after the first 18 months of federal COBRA. Generally, the groups must be fully insured (not self-insured/self-funded) and must be covered by a carrier domiciled in California. Plans outside of California, like self-funded plans, are exempt.

For more information on Cal-COBRA extension and AB 1401, visit this page on my site.

For more information on Cal-COBRA and California mini-COBRA, visit this page on my site.

Before I forget, Happy Cinco de Mayo!