Health Insurance Continuation

What Small Employers Need to Know

State Continuation is the state equivalent to federal COBRA for Oregon employers with fewer than 20 employees and others not subject to COBRA law. The American Recovery and Reinvestment Act (ARRA), which brought about the federal health insurance subsidy of 65% of health insurance premiums for workers involuntarily terminated since September 1, 2009 - and their families, applies to State Continuation as well as COBRA. On April 28, 2009, Governor Kulongoski signed legislation to extend benefits for workers laid off by small employers in order to allow those unemployed Oregonians to take full advantage of the federal health insurance subsidy. This bill extends State Continuation coverage to 15 months and allows qualified beneficiaries a second opportunity to elect coverage. Additionally, insurance carriers are required to notify all Oregonians who were employed by small businesses and whose jobs ended between 9/1/08 and 5/31/10 that they have the option to elect coverage. Please note that the burden of managing the payments from involuntarily terminated employees eligible for state continuation as well as claiming the subsidies has been placed on the insurance carrier not the former employer.