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Ohio Legislature Amends Ohio Mini-COBRA
The Ohio Legislature amended Ohio’s Mini-COBRA law extending benefits from 6 to 12 months and changing the requirements to determine who is eligible. Ohio’s Mini-COBRA law provides for continuation health and proscription coverage if an employer has fewer than 20 employees. Prior to the amendments Ohio’s Mini COBRA law a former employee was entitled to continuation coverage following leaving his or her position if:- eligible for unemployment benefits at that time of their separation;
- continuously insured under a group policy during the 3 month period preceding the termination of employment; and
- covered or eligible for Medicare or under other group coverage.
The big change in the law is that it extends benefits from six months to twelve months. This change is applicable if your company has its health insurance plan contract renewal on or after April 2, 2009. The period of continuation is six months for group employer policies or contracts issued or renewed before April 2, 2009, and twelve months for those issued on or after April 2, 2009.
If this was not enough, the Amendments also provide that on January 1, 2010, the Ohio Mini-COBRA law will revert back to its former provisions whereby an employee must be entitled to unemployment compensation and the maximum period of benefits is six-months. As such, if an employer’s next contract renewal is not until January 1, 2010 through April 1, 2010, the Amendments giving an employee 12 months of continuation coverage will never apply to such an employer if the law remains unchanged.
In order to provide notice of these changes the Ohio Department of Insurance has provided two new model notices. One for former employees who have currently elected Ohio Mini-COBRA and one that applies going forward. A link to these forms and other information regarding the Amendments to Ohio Mini-COBRA can be found at:
http://www.ohioinsurance.gov/ConsumServ/COBRA.htm
If an employee is currently receiving continuation health benefits under Ohio’s Mini-COBRA law, send such a former employee the notice posted on the above website that is entitled “Current Recipient Continuation Coverage Alternative Notice.” Going forward for employees who are involuntarily terminated in the future, send such employees the form entitled “Continuation Coverage Election Notice.” These forms are model forms and employers must change them by adding information and possibly deleting information.
Keep in mind that these changes are in concert with the new federal subsidy program under ARRA. In the context of small employers, the health insurance companies and not the employers are entitled to reimbursement from the government. However, small employers will have to provide their insurance companies with the following information to verify the former employee’s eligibility for the subsidy:
- Attestation of involuntary termination, including the date of the involuntary termination for each former employee whose involuntary termination is the basis for eligibility for the subsidy;
- Proof of each former employee’s eligibility for state continuation coverage and election of state continuation coverage; and
- Request to receive the subsidy.