THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SHAPIRO, MATZIE, LONGIETTI, BRADFORD, BRIGGS, BURNS, CALTAGIRONE, CARROLL, COHEN, D. COSTA, DeLUCA, DePASQUALE, FABRIZIO, FREEMAN, GIBBONS, GRUCELA, HARKINS, JOSEPHS, KOTIK, MAHONEY, MANDERINO, MANN, McGEEHAN, McILVAINE SMITH, MICOZZIE, MILLER, MURPHY, MURT, MUSTIO, M. O'BRIEN, PASHINSKI, PICKETT, READSHAW, REED, SIPTROTH, WHEATLEY AND HOUGHTON, APRIL 7, 2010

AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 21, 2010   

AN ACT

Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An

act relating to insurance; amending, revising, and

consolidating the law providing for the incorporation of

insurance companies, and the regulation, supervision, and

protection of home and foreign insurance companies, Lloyds

associations, reciprocal and inter-insurance exchanges, and

fire insurance rating bureaus, and the regulation and

supervision of insurance carried by such companies,

associations, and exchanges, including insurance carried by

the State Workmen's Insurance Fund; providing penalties; and

repealing existing laws," further providing for Mini-COBRA

small employer group health policies; and providing for

<--

continuation of coverage reinstatement.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 635.4(a)(6)(i)(A) 635.4(a)(6)(i) of the

<--

act of May 17, 1921 (P.L.682, No.284), known as The Insurance

Company Law of 1921, added June 10, 2009 (P.L.5, No.2), is

amended to read:

Section 635.4.  Mini-COBRA Small Employer Group Health

Policies.--(a)  A group policy in effect or delivered or issued

for delivery in this Commonwealth on or after the effective date

of this section by an insurer which insures employes and their

eligible dependents for hospital, surgical or major medical

insurance shall provide that covered employes, or eligible

dependents whose coverage under the group policy would otherwise

terminate because of a qualifying event, shall be entitled to

continue their hospital, surgical or major medical coverage

under that group policy subject to the following terms and

conditions:

* * *

(6)  (i)  Continuation of coverage under the group policy for

any covered employe or eligible dependent shall terminate upon

failure to satisfy paragraph (2) or, if earlier, at the first to

occur of the following:

(A)  the date [nine] fifteen months after the date the

<--

covered employe's or eligible dependent's coverage under the

group policy would have terminated because of a qualifying

event;

* * *

Section 2.  This act shall apply to provide health coverage

that begins on or after February 17, 2009.

(A)  [the] The end date, determined as follows:

<--

(I)  Except as set forth in subclause (II) or (III), fifteen

months after the date the covered employe's or eligible

dependent's coverage under the group policy would have

terminated because of a qualifying event.

(II)  If the Insurance Department publishes a notice in the

Pennsylvania Bulletin stating that a Federal premium assistance

program, including the American Recovery and Reinvestment Act of

2009 (Public Law 111-5, 123 Stat. 115), is terminated, nine

months after the date the covered employe's or eligible

dependent's coverage under the group policy would have

terminated because of a qualifying event[;].

(III)  If, subsequent to publication of a notice under

subclause (II), the department publishes a notice in the

Pennsylvania Bulletin stating that a Federal premium assistance

program is in existence, fifteen months after the date the

covered employe's or eligible dependent's coverage under the

group policy would have terminated because of a qualifying

event.

(B)  [if] If the employe or member fails to make timely

payment of a required premium contribution, the end of the

period for which contributions were made[;].

(C)  [the] The date on which the group policy is terminated.

* * *

Section 1.1.  The act is amended by adding a section to read:

Section 635.5.  Continuation of Coverage Reinstatement.--A

covered employe or eligible dependent whose continuation of

coverage terminated upon the expiration of a period of months as

provided in section 635.4(a)(6)(i)(A) prior to the effective

date of this section shall have the continuation of coverage

reinstated for an additional period of six months under the same

terms and conditions that existed on the date of the qualifying

event which prompted eligibility under this act.

Section 2.  This act shall apply retroactively to July 10,

2009.

Section 3.  This act shall take effect immediately.