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The law extends the enrollmentg period to 120 days from 60 The coverage, often called “mini-COBRA,” will ultimatelt allow employees to receive the federal stimulusz package’s 65 percent COBRA premium subsidy. Laid-off personnelk must have worked at small businessed with fewer than20 employees. “Because of this legislatiojn and the federal premium more North Carolinians who have been laid off will be able to maintain theirinsurance coverage,” says N.C. Insurancee Commissioner Wayne Goodwin.
“We hear from a lot of consumers who unfortunatelty have chosen not to extend theidr coverage through COBRAor mini-COBRA because it is simplty too expensive or they missed the electiom period.” COBRA gives workers and their families the option to continue group health benefits for limitec periods of time under certain circumstances. Under federalk law, COBRA generally applies to companiews with 20 ormore employees, and workerd may be charged up to 102 percentt of the full health insurance premium.
Insurancs companies of small employers — those who have fewer than 20 employeez — are required to offere continuation coverage underNorth Carolina’w Group Health Insurance Continuation laws. The federal stimulus packagew contains two provisions that expand the benefit s available to employees whose jobs have been It extends the election period for eligible employeesx to determine whether they wish to enrol in the federalCOBRA program. The new N.C. law providesd the same extended election periosfor mini-COBRA in North Carolina.
The federal packag e also provides a subsidy that pays for 65 percent of the premium for both COBRAand mini-COBR A recipients who were laid off between Sept. 1, and Dec. 31, 2009. Depending on the size of the formefr employer, either the employer or the insurance providef fronts 65 percent of the premiumj amount and then recoups that expense throughn federal payrolltax credits. Workers are responsible for the remainin g 35 percent ofthe premium.
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