Under New York State law, a person who is an employee or member of a group may continue group health insurance coverage for up to a total of 36 months regardless of the reason that the person lost eligibility for coverage. However, until the most recent update to the law, it only applied to policies or contracts issued, renewed, modified, altered or amended on or after July 1, 2009. Therefore, a person could not take advantage of the 18-month extension of group health insurance coverage until the group policy or contract was renewed, modified, altered or amended. As a result, any person receiving federal COBRA or mini-COBRA coverage who exhausted the initial 18 months of coverage before the group policy or contract was renewed, modified, altered or amended was not entitled to an additional 18 months of coverage.

To ensure that these benefits apply to as many people as possible, the New York State Legislature enacted Chapter 498, which amends this section of the law to apply to every group health insurance policy or contract that was issued, renewed, modified, altered or amended between July 1, 2009 and October 31, 2009, and all policies and contracts on and after November 1, 2009.

As a result, members who exhausted their state continuation or COBRA coverage between July 1, 2009 and November 1, 2009, and prior to their plan’s renewal date, are now being provided a special enrollment period so they may be entitled to elect an additional period of continuation, which, when added to the member's original continuation period, will total 36 months of continuation coverage.

WHAT THIS MEANS TO YOU AS AN EMPLOYER?
Those that qualify for the special enrollment period as outlined above must be offered special enrollment for this benefit under these terms:

Special enrollment period

• The special open enrollment runs through May 1, 2010.
  
• Coverage is prospective and takes effect within 30 days after election and premium payment.
  
• Members who elect the additional period of coverage continuation during this special open enrollment period are entitled to continue coverage for an additional period, which, when added to the member's original continuation period, will total 36 months under state continuation or in combination with COBRA.
  
• The additional coverage continuation period is counted from the re-enrollment effective date for members eligible under the special enrollment period.
  
• Any gap in coverage between the member's COBRA or state continuation termination date and the reenrollment effective date of coverage under this special open enrollment provision does not reduce the 36-month period of continuation coverage. The gap should be disregarded for purposes of determining creditable coverage for application of preexisting condition rules.

The law does not change any other aspects of COBRA or state continuation, including notice requirements, premium cost, collection of premium, election periods, etc.

WHAT SHOULD I DO NEXT?
You can CLICK HERE to review the state law.

If you have any additional questions regarding the information within this eCommunication, please call Corporate Synergies at 1.866.CSG.1719 or CLICK HERE to contact us today.

Corporate Synergies is pleased to provide regular updates on issues affecting group benefits insurance. As an insurance broker and consultant, Corporate Synergies is proactive in monitoring federal and state legislative and regulatory activity to ensure that you stay informed. Our customers call us their “Dedicated Advocates”. We work on your behalf.