N.Y. State COBRA-like Law
Extends
Dependent Benefits Coverage to Age 29
New York State recently passed a law that
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.
Your basic health carrier should notify you
with details on the new state law in the near future.
Coordination with ARRA COBRA premium subsidies
The American Recovery and Reinvestment Act of
2009 (ARRA) reduced COBRA rates (details
here) but only to those who
lost NYC basic health insurance and Welfare Fund coverage between
September 1, 2008 and February 28, 2010, owing to involuntary
termination of employment.
A dependent child who reaches the age limit
while within an ARRA-subsidized COBRA family contract [D.2 above] will
have new COBRA rights but the premium will not be reduced by the ARRA
subsidy
Adding and Dropping Dependents after Initial COBRA election
Changes to COBRA coverage of dependents (i.e.,
during the COBRA premium payment period) are limited to:
1) Death or Birth (or legal adoption)
of any individual under the contract, and
2) Gain or Loss of other insurance
availability of any individual under the contract or who could have been eligible at the
time of the COBRA event.
