KS Incorporates COBRA Extension into State Law

April 17, 2009 (PLANSPONSOR.com) - Kansas Governor Kathleen Sebelius has signed legislation allowing certain workers that have lost their jobs to keep their employer-provided health insurance.

A press release from Sebelius’ office says HB 2052 accesses American Recovery and Reinvestment Act (ARRA) funds aimed at helping out-of-work Kansans keep their health care through 2010. The legislation amends the state continuation of coverage law (Kansas COBRA) to incorporate provisions and requirements of the ARRA.

The ARRA includes a provision that would provide a 65% federal COBRA premium subsidy for nine months for employees who are laid off between September 1, 2008, and December 31, 2009 (see H.R. 1 Contains COBRA Provisions ). The continuation of coverage provisions would expire on January 1, 2011.

“Reduced costs for COBRA coverage will help to keep Kansas families insured through these tough economic times,” said State Treasurer Dennis McKinney, in the announcement. “This will also benefit Kansas doctors and clinics, because they will have fewer unpaid accounts.”