INSURANCE - HEALTH;

You want to know whether Connecticut’s coverage continuation law can be amended to provide three years of continuation coverage for employees age 62 and over.

Yes, Connecticut’s continuation of coverage requirement for group health insurance policies delivered, issued for delivery, renewed or continued in the state after October 1, 1997 may be amended to give employees age 62 and over whose employment is terminated the right to continue their group coverage for three years.

Under current law, employees and covered dependents are entitled to 18 months of continuation coverage if the employee (1) is laid-off, (2) takes a leave of absence, (3) works reduced hours, or (4) is terminated. The employee’s spouse and dependent minor children are entitled to 36 months of continuation coverage if (1) the employee dies; (2) there is a divorce, court ordered annulment, or legal separation; or (3) the child loses dependent status either through marriage or reaching age 19, or age 23 if a full-time student at an accredited institution of higher learning (CGS § 38a-554(b)).

Termination of employment, except when the termination is the result of the employee’s gross misconduct, is a qualifying event that triggers continuation coverage under both state and federal laws.

The Connecticut continuation law applies only to group policies purchased by employers with fewer than 20 employees.

Under federal law, only employers with 20 or more employees are obligated to offer COBRA continuation coverage. Small employer plans are exempt (IRC § 4980B(d)(1)).

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