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Massachusetts has laws governing continuation of benefits. Under Massachusetts law, when an plan participant is involuntarily laid off or dies, the coverage for the participant, his spouse, and dependents is to continue for 39 weeks from the date of termination or death, or until the participant, his spouse, and dependents become eligible for benefits under another group plan, whichever occurs first. (Chapter 175, §110G)
The plan participants may elect to continue participation in such plan by giving at least 30 days written notice thereof to the employer. (Chapter 175, §110G)
Plan participants are responsible for the payment of the whole premium, including any and all amounts normally paid by the employer as employee's benefits, to the employer or policyholder throughout the extension period. After timely receipt of the premium payment from the responsible individual, if the employer or policyholder fails to make payment to the insurer or hospital or medical service corporation with the result that coverage is terminated, the employer or policyholder shall be liable for benefits. (Chapter 175, §110G)
If an employee is terminated due to a plant closing or covered partial closing, coverage must continue for 90 days from the date of termination or until the employee and his dependents become eligible for benefits under another group plan, whichever comes first. In this situation, the plan participants and employer is responsible for the payment of their respective shares of the premium. Again, if the employer or policyholder fails to make payment to the insurer or hospital or medical service corporation with the result that the coverage is terminated, the employer or policyholder shall be liable for the benefits. (Chapter 175, §110G)
The employer or policyholder must notify the plan participants of their eligibility to participate in the above-mentioned plans. (Chapter 175, §110G)
If there is a contractual agreement arrived at by a collective bargaining process that contains provisions requiring an employer to pay for the continuation of such insurance for employees whose employment is terminated by a plant closing or covered partial closing, it supercedes the above requirements when the contractual agreement provides for at least three months or ninety days continuation of such insurance. (Chapter 175, §110G)
Former spouses must be and remain eligible for benefits, notwithstanding the effective date of the plan, without additional premium or examination. This eligibility continues until the former spouse is remarried. Upon remarriage, the former spouse has the right, if so provided in the judgment, to continue to receive benefits by means of an additional rider to the family plan or the issuance of an individual plan, either of which may be at additional premium rates. (Chapter 175, §110I)
If you are a small company (those that, during at least 50 percent of the working days, had 50 or fewer eligible employees), coverage must extend for at least the period beginning on the date of the qualifying event and ending not earlier than the earliest of the following:
Qualifying events include the following:
(Chapter 176J, §9)
Contact
Massachusetts Division of Insurance
Regulations
General Laws of Massachusetts
Part I, Title XXII, Chapter 175:§110G, and §110I
Chapter 176J: §9