Amendments to New York Insurance Law Extends “Mini-COBRA” Eligibility Period and Benefits for Dependent Children
*By Patrick J. Hoban

New York Governor David Patterson signed two bills into law that require commercial health insurers issuing group health policies under state law to offer up to 36 months of healthcare continuation coverage for eligible employees and extend dependent coverage to covered employee’s children up to the age of 29 respectively.

The amendment to Section 3221 of the New York State insurance law requires insurers to offer policies that extend continuation coverage for eligible employees from 18 to 36 months. As part of the State’s “Mini-COBRA” law, the requirement applies to all employer policyholders regardless of the size of their workforce. The amendment did not change other statutory provisions regarding eligibility, election, and events that terminate continuation coverage. While the change applies to any policies or contracts issued, renewed, modified, or amended after July 1, 2009, the New York State Department of Insurance expects that the new benefit will apply to most policies on its next annual renewal date.

The amendment to Section 3216 requires insurers to offer coverage to the unmarried “dependent” children of covered employees up to the age of 29, without regard to the child’s degree of financial dependence. Children are eligible for this coverage if they are not eligible for employer-provided insurance in their own right, they live, work, or reside in New York or the service area of the insurer, and they are not covered by Medicare. Employers are not required to pay for any of the cost of this coverage. Employees and qualifying dependent children may elect prospective coverage under the new law for up to twelve months after enactment of the law if a dependent child’s coverage was terminated before age 29 under the terms of a prior group policy. Coverage is terminated when a dependent child no longer meets the eligibility requirements, fails to pay premiums, of the group policy is terminated and not replaced with another group policy. The law takes effect on September 1, 2009, and will apply to contracts issued, renewed, modified, altered or amended on or after that date.

If you insure employees under New York State law and have any questions about how these changes will affect your business, please contact Pat Hoban (pjh@zrlaw.com) 216.696.4441.

*Patrick J. Hoban practices in all areas of labor and employment law, with a focus on private and public sector labor law. Contact him at 614.224.4411 or pjh@zrlaw.com.

This newsletter is not intended as a substitute for professional legal advice and its receipt does not constitute an attorney-client relationship. If you have any questions concerning any of these articles or any other employment law issues, please contact Stephen S. Zashin at 216.696.4441.
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