Bill > A3134

Introduced Session

This bill seeks to address the burdensome cost of health insurance, as provided through federal COBRA continuation coverage, by allowing the dependents of certain recently-deceased public safety employees to apply to the State Treasurer for a reimbursement of the cost of the first six months of COBRA continuation coverage. This bill addresses the concern raised by the Pension and Health Benefits Review Commission that the prior version of the bill requiring employers to continue coverage for six months after the employee's death would have made dependents ineligible for COBRA coverage altogether. COBRA continuation coverage ordinarily is available for 36 months. This bill is intended to not interfere with dependents' ability to keep COBRA coverage for this full term if desired. The COBRA reimbursement permitted under this bill applies to the spouse and unmarried children of State and local public safety employees, including State and local police, full-time, part-time and volunteer firefighters, State and county correctional officers, and members of first aid, emergency, ambulance or rescue squads, if the public safety employee died while on duty, or within 24 hours of going off duty. The COBRA reimbursement is only available so long as the dependents were covered by health insurance through the State Health Benefits Program, or otherwise through the public safety employee's employer, until the time of death. To obtain a COBRA reimbursement, any dependent, for whom the first six months of COBRA coverage ended during the previous calendar year, may apply to the State Treasurer by March 1. The bill appropriates $750,000 to the Department of Treasury for the purpose of funding COBRA reimbursements, and encourages the Legislature to appropriate sufficient funding in future years. If, during any year, the amount of funding dedicated to COBRA reimbursements by the annual appropriations act is less than the total amount applied for by qualifying dependents, then the State Treasurer shall allocate the COBRA reimbursement payments on a pro rata basis according to the amount for which each dependent has applied.

AI Summary

Committee Categories

Michele Matsikoudis (R)*,  Cleopatra Tucker (D)*, 

Introduced, Referred to Assembly Labor Committee (on 01/09/2024)

Official Document