This Act ensures that small (50 or fewer employees) businesses will have access to health insurance, despite the special health status of any employees. Also, insurance carriers must offer coverage renewals in subsequent periods once they have sold coverage to an employer. The key payroll-related aspect of this Act is its changes to COBRA regulations. The Act entitles anyone who is disabled during the first 60 days of COBRA coverage to receive up to 29 months of COBRA coverage, as well as that person’s family members. Also, COBRA coverage cannot be terminated in cases where a former employee is denied coverage in a new plan due to a pre-existing condition, thereby ensuring that the individual will continue to receive medical insurance coverage.
Health Insurance Portability and Accountability Act