On June 10, 2009, Governor Ed Rendell signed Act 2 of 2009 into law. This law extends COBRA health insurance benefits to employees of small companies with 2-19 employees. Previously, these small businesses were exempt from the federal COBRA rules.

The Pennsylvania Mini-COBRA law (which took effect on July 10, 2009) gives employees of small businesses – and their dependents- the right to purchase continuing health insurance coverage for up to nine months after they leave employment.  Additionally, the law authorizes the 65 percent reduction in COBRA premiums authorized under the federal American Recovery and Reinvestment Act of 2009 to be available to those applying for benefits under the Mini-COBRA law.