38.2-3541.1 - Continuation following involuntary termination of employment; special circumstances.
§ 38.2-3541.1. Continuation following involuntary termination of employment;special circumstances.
A. For purposes of meeting the definition of "COBRA continuation coverage"in Title III of Division B of the American Recovery and Reinvestment Act of2009, P.L. 111-5 (the Act), employees who are involuntarily terminated duringthe period beginning September 1, 2008, and ending December 31, 2009, orduring any period for which premium assistance is specified by the Act aslater amended, shall be offered the option to continue their existing grouphealth insurance coverage subject to the following:
1. Coverage shall continue for a period of up to nine months, or anyadditional period specified by the Act as later amended, following the dateof (i) involuntary termination for those terminated on or after the date ofenactment of this section or (ii) following the date of the notificationrequired pursuant to subdivision 3, contingent upon the involuntarilyterminated employee's eligibility for premium assistance under the Act;
2. Premium payments (i) may be paid on a monthly basis to the grouppolicyholder and (ii) shall not exceed 102 percent of the insurer's currentpremium rate applicable to the group policy;
3. Employers shall provide notification of the availability of continuationunder this section as follows:
a. Notification shall be provided to those employees whose employment wasterminated on or after September 1, 2008, and prior to February 17, 2009, inaccordance with Section 3001 of the Act;
b. Notification shall be provided to those employees whose employment wasterminated on or after February 17, 2009, and prior to the date of enactmentof this section, no later than 60 days following the date of enactment ofthis section or the employee's termination, whichever is later; and
c. Notification shall be provided to those employees whose employment wasterminated after the date of enactment of this section no later than 30 daysfollowing the date of the employee's termination;
4. The employee shall elect this continued coverage no later than 60 daysfollowing notification of plan enrollment options; and
5. All other provisions, restrictions and limitations contained in the Actshall apply.
B. The provisions of this section shall only apply to employees of smallemployers whose group health insurance coverage does not provide forcontinuation of coverage under the Consolidated Omnibus Budget ReconciliationAct of 1985 (COBRA).
C. As used in this section, "group health insurance coverage" and "healthinsurance issuer" shall have the same meaning as provided in § 38.2-3431.
(2009, c. 796; 2010, c. 21.)