Short-term coverage for unemployed (new law)

Increasing unemployment numbers are translating to more people losing their health care coverage. However, thanks to funds from the American Recovery and Reinvestment Act of 2009, some could see their coverage continued and their payments subsidized.

Signed May 6 by Gov. Tim Pawlenty, and effective the next day, the law will ensure that employers with fewer than 20 people have the same benefit as their larger counterparts, under terms of Minnesota’s “mini-COBRA” statute.

Qualified employees who have been involuntarily terminated for reasons other than misconduct will see the federal government provide a 65 percent subsidy toward their COBRA premiums for up to nine months of coverage, while reducing an enrollee’s share of the premium to 35 percent. People terminated between Sept. 1, 2008, and Feb. 16, 2009, who originally declined COBRA coverage or unenrolled by Feb. 16, will have a second chance to accept the coverage now that the federal subsidy is available.

Rep. Joe Atkins (DFL-Inver Grove Heights) and Sen. Linda Scheid (DFL-Brooklyn Park) sponsor the law.

HF2138/SF1904*/CH33