CARCIERI

PROVIDENCE — The state has officially closed a loophole that prevented hundreds of Rhode Islanders from accessing the COBRA subsidy offered under the federal economic-stimulus package.

The change, approved by legislators Wednesday and signed into law by Governor Carcieri Thursday, allows workers laid off from small companies or those that dissolved to participate in the 65-percent subsidy offered by the federal government.

Under the federal COBRA law (named after the Consolidated Omnibus Budget Reconciliation Act), people who lose their jobs can remain enrolled in their former employers’ group-coverage plan, although they must pay the whole premiums.

But COBRA applies only to existing companies with more than 20 workers. People laid off from businesses with fewer employees or those that have folded rely on a state law that allows them to purchase benefits directly from their insurer in a style similar to COBRA.

Without a change to that state law, those workers, including the 280 from The Colibri Group, the East Providence jewelry maker that abruptly shut down in January, had no access to the subsidy.

Lt. Gov. Elizabeth Roberts, whose office has been working to help educate Rhode Island’s jobless about insurance options, discovered the inconsistency and urged lawmakers to fix it.

Having discovered the problem only in recent days, legislators had to move quickly to amend the law before a federally imposed deadline of April 17. A fast-moving bill was approved late Wednesday.

“It’s a very procedural change, but one that opens the door for federal dollars to flow directly to people that need them,” Roberts said at the bill’s signing Thursday morning.

“Hundreds of Rhode Islanders will now be able to sign up for this program and it will be more affordable for everyone because of the federal subsidy,” Carcieri said. “At the end of the day, this is just about giving more Rhode Islanders that are hurting right now — who are out of work and struggling for health insurance — the help they need to get the benefit and reduce expenses.”

Among those who will now be able to access the subsidy are Alda and Renald Bonin, former Calibri employees who lost their insurance when they lost their jobs. Both are in their 50s with past medical problems and were unwilling to go without health insurance. Unable to access the COBRA subsidy, they’ve been paying $1,000 a month out of their retirement for insurance. The subsidy, they said, may save their retirement fund.

But the clock is ticking. Anyone who was laid off after Sept. 1, 2008, and is interested in signing up for any COBRA subsidy must do so before May 1. Those let go from larger companies still in business should contact their former employer directly for details. People laid off from companies with less than 20 workers or those that are no longer viable should call their former insurer directly. Further information is also available on the lieutenant governor’s Web site at www.ltgov.ri.gov/ or by calling that office at (401) 222-2371. The Health Insurance Commissioner’s site offers additional information at www.ohic.ri.gov

cneedham@projo.com