NEW COBRA RULES: PERIOD EXTENSIONS
AND PREMIUM SUBSIDIES 

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Basic Health COBRA Benefits Period Extends from 18 to 36 months

New York State COBRA-like Law Extends Dependent Coverage to 29

Basic Health COBRA Benefits Period
Extended from 18 to 36 months

Last year New York State improved access to basic health insurance for New Yorkers by making continuation coverage (“mini-COBRA”) available for a total of 36 months.  Under the new law, people eligible for federal COBRA or state continuation coverage may receive a total of 36 months of coverage. However, as the law only applies to medical/hospital insurance contracts, the Welfare Fund supplemental benefits program is not affected. The benefits period for Welfare Fund COBRA remains at 18 months.

N.Y. State COBRA-like Law Extends
Dependent Benefits Coverage to Age 29

New York State now allows unmarried dependents over 23 years old to extend their basic health insurance coverage under a parent’s group plan to age 29. Two very important aspects of this law are:

1) Dependent benefits are extended by premium payment (as in all COBRA coverage)

2) The law only applies to medical/hospital health insurance contracts in New York State—Welfare Fund supplemental benefits (Rx drug coverage, dental, optical, etc.) are not affected by this law.

Dependents who enroll will receive individual policy coverage, instead of inclusion as a dependent on the parent's policy. This coverage must be the same as the parent’s group coverage, and will cost the full monthly premium payment.

As of July 1, 2010, full-time active and retiree participants may enroll eligible dependents in continuation coverage of their New York City Health Benefits Program basic health insurance (GHI, HIP, etc.). The enrollment form is available here.

Once an eligible dependent has turned 24, the parent or the dependent has 12 months to enroll in the continuation coverage.

Enrollment information for eligible dependents of adjunct participants in Welfare Fund Basic Health Insurance is available here.

Coordination with ARRA COBRA premium subsidies

The American Recovery and Reinvestment Act of 2009 (ARRA) reduced COBRA rates but only to those who lost NYC basic health insurance and Welfare Fund coverage between September 1, 2008 and March 31, 2010, owing to involuntary termination of employment.

A dependent child who reaches the age limit while within an ARRA-subsidized COBRA family contract  will have new COBRA rights but the premium will not be reduced by the ARRA subsidy

^Notes:

1. Children are covered up to age 19. Unmarried full-time students are covered up to age 23. Under the Welfare Fund, children who exceed the eligibility age qualify for up to 36 months of COBRA. Under NYC Basic Insurance, children who exceed the eligibility age qualify for up to 36 months of COBRA, and then N.Y. State continuation of coverage up to age 29 .

Detailed information on the reduced COBRA premiums for eligible individuals, as well as application materials, have been posted on the New York City Department of Labor Relations website here. Scroll down to page 8 for info on ARRA-subsidized COBRA coverage for basic health insurance.