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December 19, 2001
Mayor Williams Signs Continuation of Coverage into Law
(Washington, DC) Under a new law signed by Mayor Anthony Williams on December 17, employees of small employers in the District of Columbia who lose their jobs will be able to continue their health insurance for three months. The Council of the District of Columbia enacted the “Continuation of Coverage Act” as an emergency law earlier this month. It extends to employees of small employers some of the same benefits that the federal COBRA law provides for employees of large employers.
“This act will provide a safety net for those insured in the small group market. Since the District has many small employers with fewer than 20 employees, this law will provide help to those who need continuation of coverage while they find alternate insurance without overtaxing the small group employer,” said, Lawrence H. Mirel, Commissioner of the DC Department of Insurance & Securities Regulation (DISR).
Employees will still have to pay the full cost of the policy during the extension, but the cost cannot exceed 102 percent of the group rate. Eligible employees and dependents must elect the continuation of coverage and tender payment to the employer within prescribed time frames. This law does not affect employees of employers who maintain a group health benefits plan for more than 20 employees since these employees already have continuing coverage protection under the Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) law. This law will work like a mini-COBRA law.
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The DC Department of Insurance and Securities Regulation (DISR) has two missions, (1) to provide fair, efficient and fast regulatory supervision of the insurance and securities businesses for the protection of the people of the District of Columbia, and (2) to create conditions that will retain and attract national and international insurance and other financial businesses to the District. | 
