*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.
