Maryland legislators have passed emergency legislation, enabling employees of small businesses to reap the same COBRA benefits given larger companies through the American Recovery and Reinvestment Act (ARRA).

The act, signed by President Barack Obama in February, reduced the continuation coverage premium for COBRA, which lets people extend employer-sponsored health insurance coverage after leaving a job. For those who lost or lose their job between Sept. 1, 2008 and Dec. 31, 2009, a temporary 65% premium reduction is available for nine months.

Through Senate Bill 84, the Maryland General Assembly extended benefits to those who used to work for an employer with 2 to 19 employees and were involuntarily terminated from employment between Sept. 1, 2008, and Feb. 17, giving these individual another opportunity to elect COBRA coverage if they did not take advantage before.

Martin O'Malley

“President Obama‘s Recovery and Reinvestment Plan not only invests in our economic infrastructure and creates jobs, but it also helps expand the safety net for families struggling during this national recession,” said Gov. Martin O’Malley said in a statement. “We’ve worked to implement the funds from this plan effectively and efficiently to put families first, and to come through this recession more quickly than other states.”

Maryland Insurance Commissioner Ralph S. Tyler said that the ARRA and the coordinating state law will “hopefully take some pressure off Maryland families who find themselves in financial trouble due to layoffs.”

“Anything we can do to keep people from going without health coverage is a benefit to the whole system,” Tyler said.