Two New Laws for Pennsylvania Employers:  The PA Dependent Coverage to Age 30 and PA Mini-COBRA laws were both signed into law by Governor Rendell.

Pennsylvania Dependent Coverage to Age 30

PA Senate Bill 189 to extend coverage for dependent children in PA until they reach the age of 30 was signed into law by Governor Rendell on June 10, 2009.  The law goes into effect 180 days after being signed (December 7, 2009) into law and coverage will be available on a rolling basis after that date as plans are renewed or for new plans.

Under this law, and at the descretion of the employer, a child age 29 or younger may retain coverage through a parent’s group health care plan if certain eligibility requirements are met.  The eligibility requirements are the child is unmarried, has no dependents, is a resident of PA or enrolled as a full-time student at an accredited institution of higher education, and is not covered under another group health or individual health insurance plan.  Employers may raise premiums to cover the cost of extending coverage.  Certain self-funded plans subject to ERISA are exempt from the requirements of this law. 

Pennsylvania Mini-COBRA

This bill, effective July 10, 2009, was signed into law by Governor Rendell on June 10, 2009 and applies to employers with 2 to 19 employees.  Covered employers who offer health insurance will be required to offer continuation coverage for medical plans (does not include FSA's, dental or vision coverages) for a period up to 9 months.  Qualifying events are similar to those under the federal COBRA laws and employers may charge up to 105% of the total premium for continuation coverage. 

The continuation coverage is also subject to the premium-subsidy requirements of the American Recovery & Reinvestment Act of 2009 (ARRA- often called the Stimulus Bill) for covered qualifying events.  Any employee of a small business in Pennsylvania who is involuntarily terminated for reasons other than gross misconduct after July 10, 2009 and before January 1, 2010 will be eligible for the 65% premium subsidy.