Stimulus Act Information Regarding Ohio’s “Mini COBRA”
By Ryan T. Neumeyer

In an effort to keep employers up-to-date on the COBRA subsidy legislation passed last month as part of the American Recovery and Reinvestment Act (ARRA), I have provided a link to an information sheet released by the Ohio Department of Insurance.  The information sheet is of great importance for employers with less than 20 employees who are covered under Ohio’s “mini-COBRA” law.  Ohio’s “mini-COBRA” law is subject to the subsidy provided for in ARRA and thus, notice of the subsidy must be given to employees who are involuntarily terminated from February 17, 2009 until December 31, 2009 and are eligible for Ohio “Mini Cobra” benefits.  The following summarizes the Ohio “mini-COBRA” law:

• Applies to a small employer (from 2 to 19 workers);
• Continuation of coverage for 6 months;
• Applies to employees who are (1) eligible for unemployment benefits at that time of their separation; (2) continuously insured under a group policy during the 3 month period preceding the termination of employment, and (3) who are not covered or eligible for Medicare or under other group coverage. 
• Employer must give notice to the employee of his right to continue coverage; 
• The notice must include notice of the entire amount of premiums due (which now until December 31, 2009 will be only 35% of the total cost), the day of the month on which the first premium amount is due and any further payments are due; and state that amount required shall not exceed the group rate for the insurance being continued under the policy on the due date for each payment. 
• To elect the employee must file a written election with the employer and pay the employer the first contribution.  
• Former employee must elect either:
  (a) 10 days after the date your coverage would end if your employer has notified you of your continuation right prior to that date; or
  (b) 10 days after your employer notifies you of your right to continuation if the notice is given after the date your coverage ends; or
  (c) 31 days after your coverage ends if that date is earlier than the date you get notice under (b).  

The special election period under the COBRA portion of ARRA does not apply to Ohio “mini-COBRA.”  Therefore, it is unnecessary for employers with less than 20 employees to issue notices of the subsidy to employees who failed to elect COBRA prior to February 17, 2009. 

Keep in mind, however, that if a former employee is currently receiving benefits under the Ohio “mini-COBRA” law that such an individual will be able to receive the subsidy in the first period of coverage following ARRA’s enactment.  Furthermore, if a former employee pays the full amount of the premium they will be entitled to be reimbursed or credited by the insurance company.  Under Ohio’s “mini-COBRA” law the employer does not have to “front” the money of the subsidy for the premiums, rather the insurance company “fronts” the money and is reimbursed by the government.  

If you have any questions regarding this or any other matters, please do not hesitate to call Ryan Neumeyer at 216-447-1551.  

http://www.ohioinsurance.gov/ConsumServ/COBRAStimulusSmallEmployers.pdf

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