MINI COBRA CHANGES

Another lawyer alerted me of this and I hope it will be helpful to many Nassau residents who now find themselves unemployed. Around a week ago, a new New York State law made several noteworthy changes. It can be found at New York State Insurance Law section 3221 and basically New York employees who leave employment voluntarily or involuntarily may now receive insured continuation health coverage, under New York State “mini COBRA”, for up to 36 months.

If the employee is receiving insured federal COBRA continuation health coverage, New York’s “mini COBRA” generally will kick in and extend the 18 months of the federal COBRA coverage for an additional 18 months (36 months total) after the 18 months of federal COBRA have been exhausted. Thus, health insurance plans which are already subject to federal COBRA are now also subject to New York State’s “mini COBRA.” Prior to this new law, New York’s “mini COBRA” did not apply at all to a health plan if federal COBRA applied to that plan. The new law takes effect as of July 1, 2009 and applies to all policies and contracts issued, renewed, modified, altered or amended on or after that date.

Another new law will take effect on September 1, 2009, and applies to all policies and contracts issued, renewed, modified, altered or amended on or after that date. Health insurance coverage for dependent adult children of employees can now be extended to age 29. Under many policies, their coverage was cut off at age 23 or, if later, at college graduation.