APRIL 2001
Q. Although a
group health plan maintained by a church or church-related organization
is exempt from federal COBRA requirements, are they also exempt from
New York State Continuation requirements?
A. No, they are not exempt from the New
York State Continuation requirements. New York State Insurance Law section
3221 (m), which is the state version of cobra, imposes the requirement
on any group health insurance policy written in the state of New York.
Unlike the federal requirement, the state requirement is imposed upon
the policy itself rather than the employer, so an organization exempt
from the federal COBRA such as a church or a small employer still has
a state obligation to offer “Continuation” for employees
in New York State involved in “qualifying events.” One exemption,
however, would be if the employer is self-insured for group health benefits.
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