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Employee Health Benefits in Pennsylvania

Pennsylvania's Mini-COBRA gives eligible workers and dependents in small groups of 2–19 employees the option to continue medical coverage for up to nine months after a qualifying event. The employee has 30 days after receiving notice to elect; the former employee pays the full premium and an administrative charge of up to 5% may apply. Mini-COBRA requires medical coverage, not necessarily dental or vision, and does not apply when federal continuation rules govern. Ask whether the group qualifies and get the full monthly cost before comparing plans. 1,2

What Is Employee Health And Benefits?

Employer health benefits give eligible staff access to medical care through a group plan or another employer arrangement. When setting a budget or renewing, compare eligibility, provider networks, employee contributions and total cost. Read the national Employee health and benefits guide.

Pennsylvania Requirements

RequirementDetails
Mini-COBRA employer sizePennsylvania Mini-COBRA applies to businesses with 2–19 employees; federal COBRA generally applies at 20 or more. 2
Continuation period and election windowUp to nine months of continuation; elect within 30 days after receiving notice. 1,2
Possible administrative chargeThe employer may add an administrative fee of up to 5% to the full premium. 2

What to Watch for in Pennsylvania

  • Send notice with a clear 30-day election deadline

    Pennsylvania Mini-COBRA requires the employee or dependent to elect within 30 days after notice. Record when the notice was delivered and give the administrator's payment instructions at the same time so the election is not lost over a missed handoff. 1,2

  • Quote the full premium and possible 5% fee

    The former employee takes on the employer and employee portions of the premium, and the employer may charge up to a 5% administrative fee. Give the employee the total monthly amount before they elect and explain when the first payment is due. 2

  • Check dental and vision separately

    Pennsylvania's small-employer statute requires continuation of hospital, surgical, or major-medical coverage; the Department says Mini-COBRA only requires continuation of medical insurance. Ask whether dental, vision, or other benefits terminate at the same time and how the employee can replace them. 1,2

Who Regulates Insurance in Pennsylvania

Pennsylvania Insurance Department

The Pennsylvania Insurance Department publishes state tools to check licensed producers, agencies, and insurers, and its Consumer Services Online portal accepts complaints about insurers, agents, brokers, and public adjusters. The department also oversees Pennsylvania insurance business and consumer services. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premium (2% for eligible surplus-lines risk retention groups) Pennsylvania charges 3% of gross surplus-lines premiums (2% for an eligible surplus-lines risk-retention group); the tax is in addition to premium, is borne by the insured, and is collected by the producer. For multistate risks, the 2025 Revenue instructions say all gross premiums are taxable when Pennsylvania is the home state, while Insurance Company Law §1621(d) says tax is levied only on premium reasonably ascribable to Pennsylvania risk; confirm allocation with your producer or the state. Surplus-lines coverage is excluded from the guaranty association, and qualifying large risks or exempt commercial purchasers may use distinct no-search routes, with the ECP route requiring disclosure and written request. 6,7,8,9

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Pennsylvania

  1. Did the business typically employ between two and 19 people, making Pennsylvania Mini-COBRA the applicable route?
  2. What is the complete monthly premium including any administrative fee, and when is the first payment due?
  3. Which dental, vision, or other benefits end even if medical coverage continues?

Employee Health And Benefits in Pennsylvania: FAQ

How long can Pennsylvania Mini-COBRA continue? 1,2

Up to nine months after a qualifying event, subject to the law's eligibility and payment terms. A 30-day election period follows notice. 1,2

Who pays for Pennsylvania Mini-COBRA? 2

The former employee pays the full premium, including the amount previously paid by the employer. The employer may add an administrative fee of up to 5%. 2

Employee Health And Benefits in Other States

Other Coverage in Pennsylvania

Sources

  1. Pennsylvania Act 51 of 2010, § 5 — Mini-COBRA Small Employer Group Health Policies. Pennsylvania General Assembly; Insurance Company Law § 635.4: qualifying events, 30-day election, up to nine-month duration, and termination events. Accessed 2026-09-29.
  2. COBRA & Mini-COBRA. Pennsylvania Insurance Department; Differences table: 2–19 employee range, nine-month duration, 30-day election, full premium and up-to-5% administration fee, medical-only scope. Accessed 2026-09-29.
  3. pennsylvania insurance regulator. State insurance regulator; PID official agency page and the search/consumer-help service map. Accessed 2026-09-28.
  4. Pennsylvania Insurance Industry Search Tool Library. State insurance regulator; PID identifies consumer Sircon and detailed individual, business-entity, and company search tools. Accessed 2026-09-28.
  5. File a Complaint with Your Insurance Company, Agent, Broker, or Public Adjuster. State insurance regulator; PID directs insurance complaints and questions to its Consumer Services Online portal. Accessed 2026-09-28.
  6. RCT-123 Gross Premiums Tax - Surplus Lines Agents (2025). Pennsylvania Department of Revenue; Instructions p. 4, imposition/base/rate: 3% on gross premiums; insured bears tax, producer collects/remits; RRG exception 2% per statute. Accessed 2026-09-28.
  7. Insurance Company Law, §1621. Pennsylvania General Assembly; Subsection (d): multi-state tax is levied only on premium reasonably ascribable to Pennsylvania risk. This differs from the 2025 RCT-123 instructions, which state all gross premiums taxable if PA is home state; see source tax. Accessed 2026-09-28.
  8. Insurance Department Act, surplus-lines notice provision. Pennsylvania General Assembly; Policy legend: insurer is not licensed and surplus-lines insurance is NOT covered by Pennsylvania Insurance Guaranty Association. Accessed 2026-09-28.
  9. Pennsylvania Insurance Company Law §§1604 and 1610 (40 P.S. §§991.1604, 991.1610). Pennsylvania General Assembly; Act 28 of 2011 §1610(a), (a.1): large-risk criteria and ECP disclosure followed by written request exempt from diligent-search requirements. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  16. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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