Changes to Ohio Mini-COBRA Premium Assistance

Many companies in Ohio employ less than 20 employees and are not subject to the federal COBRA law, which provides a qualified terminated employee the opportunity to continue his or her group health insurance. These smaller employers are covered by Ohio's "mini-COBRA" law, Ohio Rev. Code §3923.38.

Governor Strickland recently signed Sub. H.B. 2. This legislation amended Ohio's continuation coverage laws. Any group health insurance policy issued or renewed after April 1, 2009 must now include the following changes to Ohio continuation law:

• Coverage has been extended to 12 months from 6 months.

• The participant is no longer required to be eligible for unemployment compensation benefits.

• Employees must be involuntarily terminated, other than for gross misconduct.

• Continuation coverage must include prescription drug coverage if it is included in the group coverage.

Similar to the premium assistance for continuation coverage provided by the American Recovery and Reinvestment Act of 2009 (ARRA), an employee is determined to have been involuntarily terminated if he or she was given the option to resign or be fired, and elected to resign. Also similar to ARRA, an employee is terminated for gross misconduct if the misconduct involved criminal or highly unethical behavior. An employee's negligence or insubordination by itself would not render that employee ineligible for continuation coverage.

Like ARRA premium assistance for continuation coverage, under Ohio mini-COBRA, an employee needs to pay only 35% of the premium. But unlike ARRA, the employer will not have to advance the remaining 65% of the premium. Instead, the insurer receives a tax credit for 65% of the premium.

The Ohio Department of Insurance's website (www.ohioinsurance.gov) has additional information on the changes to Ohio mini-COBRA.