COBRA Control Services, LLC

New Pennsylvania requirements for state continuation

New Pennsylvania legislation (HB 1089) became effective on July 10, 2009.  We’ll be sending letters to plan sponsors explaining the law and our joint requirements established by the state.

The law

The law effects employees (and their eligible dependents) who are employed by a small group (2 to 19 employees); and makes them eligible for Pennsylvania state continuation when coverage is lost due to a qualifying event (i.e. the date the coverage would otherwise terminate). This coverage is available for up to 9 months.

Who is eligible for the subsidy

• Former employees that elect continuation coverage of health benefits, as made available under state law, between July 10, 2009 and December 31, 2009.
• Former employees who have not exhausted his or her state continuation rights as mandated by state law.
• Former employees whose modified adjusted gross income is not more than $125,000 (individual filer)/$250,000 (joint filer).

Plan sponsor requirements

• Complete and submit an Employer Attestation for any individuals who are eligible for the subsidy.
• Give the terminating employee notice of continuation within 30 days of the date insurance would otherwise terminate.
• Notify us within 14 days of the member’s election for state continuation.

For your information, click here for a copy of the letter that your clients will receive. 

Additional information, such as examples of qualifying events and premium costs, may be found on the PA legislation site.

If you have any questions, contact your Aetna Small Group Account Executive or our Broker Sales Support Team at
1-877-28-Aetna (1-877-288-3862).