Department of Insurance, Securities and Banking

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Continuation of Coverage Act of 2001 - Employers

Tuesday, December 18, 2001

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.