BULLETIN No.  01-LG-004-12/18

December 18,  2001

TO:   Employers with Less than Twenty (20) Employees who maintain a Group Benefits Plan

RE:   Continuation of Health Coverage

The District of Columbia City Council recently passed an emergency act, “Continuation of Health Coverage Act of 2001”, extending health benefits for covered members of a small employer with fewer than 20 employees for a period of three months beyond the termination of coverage.  Employees would have to pay the full cost of the policy during the extension, but the cost must not exceed 102 percent of the group rate. Eligible employees must elect the continuation of coverage benefit and provide payment to the employer within prescribed time frames.

The law will apply to all policies issued or renewed on or after January 16, 2002 (30 days after the December 17, 2001 effective date). 

This law does not affect employees of employers with 20 or more employees who maintain a group health benefits plan since these employees already have continuing coverage protection under the Federal COBRA law of 1985.

Please post this notice for all affected employees.