In the News
MyFoxChicago.com, May 15, 2010
Gov. Quinn Signs Bill Protecting Small Business Employees' Health Insurance
Chicago - Gov. Pat Quinn on Saturday signed legislation into law that ensures unemployed small business workers in Illinois will receive continued COBRA health care insurance coverage and premium discounts provided under the federal American Recovery and Reinvestment Act.
The “Mini-COBRA” law, Senate Bill 3004, applies to workers of companies with 19 or fewer employees, according to a release from the governor's office. The law amends the Illinois Insurance Code and the Health Maintenance Organization Act to extend the duration of the insurance premium subsidy from 12 to 15 months.
“This law protects workers laid off from small companies, and extends ongoing coverage and the premium discounts provided under the federal recovery act,” Quinn said.
The law also extends the eligibility period for the insurance premium subsidy from December 31, 2009 to May 31, 2010, the end of the period set forth in the federal American Recovery and Reinvestment Act (ARRA). Under ARRA, employees who lose their health insurance coverage because they lose their job on or before May 31, 2010, can receive a 65 percent premium reduction, for up to 15 months.
The law also ensures that employees of small businesses will be eligible for the premium reduction for as long as the federal government makes it available under ARRA. Without this bill -- Sen. Susan Garrett (D-Highwood) and Rep. JoAnn Osmond (R-Antioch) -- former employees of companies with 19 or fewer workers would not be guaranteed the full benefits and protections provided under ARRA, the release said.
“By virtue of this legislation that Governor Quinn is signing into law, individuals encountering the trauma of unemployment will have continuing access to subsidized, more affordable extended health insurance," Michael McRaith, director of the Illinois Department of Insurance, said.
The bill is effective immediately, the release said.
Passage of the bill was backed by the Illinois Department of Insurance and the American Federation of State County and Municipal Employees Council 31.